What Is a Benefit Rider?

When it comes to choosing a life insurance policy, there are a dizzying number of options. Prospective policyholders have to consider everything from group vs. individual and term vs. whole, depending on personal circumstances. Additional, customizable options are also available in the form of benefit riders.

Insurance benefit riders are, most simply, add-on elements to an insurance policy that can be invoked throughout the duration of the policy, depending on individual situations. For instance, those in need of finances for cancer patients may be eligible for living benefits, if the policyholder added such a rider to the policy.

Most Common Benefit Riders Used For Cancer Treatment Funding

Accelerated death: This worst-case scenario option typically is provided in the case of a terminal illness, in which the policyholder is not expected to live more than two years.If eligibility requirements are met, the accelerated death benefit rider usually allows the individual to access cash advances from their death benefit. Though it can provide funding to help a person live out his or her final days comfortably, it will reduce the amount left to beneficiaries’, which is a consideration.

Accidental death: Insurance companies often offer the option for an accidental death rider, which provides added money on top of the standard death benefit if the policyholder dies of a non-medical cause. Such riders can be used in the case of a car accident or a slip and fall.

Disability income: This add-on allows for monthly payments from the insurance company if the policyholder becomes permanently disabled. Cancer treatment funding could be accessed through this type of rider, depending on the person’s prognosis.

Riders can be very valuable additions to a life insurance policy, providing vital funds in case of emergency. However, the riders must already be built into your policy in order for you to take advantage of them; for instance, you typically can’t add an accelerated death benefit after you get a terminal prognosis and are searching for cancer treatment funding.

Life Credit Company allows cancer patients to draw on their policies, regardless of riders, to help reduce the financial burden. We’re not always prepared for a medical crisis, but financial resources for cancer patients can ease the impact of bad news.