Most Common Insurance Riders To Consider

With the rising healthcare costs, having an insurance policy is considered a must today. Insurance policies can be tailored to the policyholder’s specific needs through optional riders. If your current policy isn’t comprehensive enough, adding riders will fill the gap.

You might be wondering what are the different kinds of riders available in the market. In this blog, we will discuss everything you need to know about insurance riders.

What Is a Rider?

In simple terms, a rider is an additional benefit that can be added to your insurance plan. Riders are considered add-ons, which provide additional coverage at an extra cost. They allow you to customize your policy and make it more comprehensive. By adding supplemental riders, it’s possible to fill any gaps that can’t be provided by the standard policy.

Although riders offer additional benefits, they come at a cost on top of the monthly premiums. Depending on the policyholder’s age and coverage amount, the extra premium for a rider can reach up to $30 per month. Be sure to weigh the cost of the rider to avoid having excess insurance coverage.

Riders come in various forms and types, so make sure you’re choosing the right insurance rider. Now, let’s look at the different riders available that you can add to your existing policy:

Maternity Cover Rider

Getting healthcare coverage is necessary for expectant mothers and their babies. However, many health insurance policies do not provide maternity coverage. You will have to add a maternity cover rider for an extra monthly charge. This add-on feature covers expenses related to pregnancy and childbirth. By including a maternity cover rider, expectant mothers can access a wide range of benefits, such as the following:

• Prenatal Consultations
• Hospital Stays
• Postnatal Care
• Newborn Care
• Diagnostic Tests

Once the maternity-related expenses have been covered, expectant mothers can focus on their health and overall well-being. It provides them with peace of mind while alleviating any financial burden. 

Like the usual insurance policy, the maternity cover rider has a waiting period. Policyholders need to wait for 24 months to pass before the coverage comes into effect. The waiting period and claims procedure will vary depending on the insurance plan. Make sure to consult your insurance provider regarding the policy terms.

Hospital Cash Cover

We all know that long hospital stays can be expensive. Out-of-pocket costs will quickly add up the longer a patient stays in a healthcare facility. Hospital cash benefit refers to the daily cash allowance the insured can get in case of hospitalization. The amount of cash allowance and length of hospital stay differs from policy to policy. 

Under this rider, the policyholder can use the cash amount for inpatient hospitalization, transportation, caregiver costs, and other expenses. The hospital cash benefit can also be used to compensate for the loss of income. 

Accidental Death Rider

Another option to consider is an accidental death rider. If the insured dies due to an accident, the beneficiaries can receive double the face amount of the policy. In most cases, the personal accident rider covers compensation for permanent total disability and partial disability. These accident-related riders can be added to your basic policy at an extra cost. 

Waiver of Premium Rider

Policyholders have the option to include a waiver of premium rider. If the insured becomes critically ill or permanently disabled, future premium payments will be waived by the insurance provider. Applicants with pre-existing disabilities or physical impairments can't qualify for a waiver of premium rider. Before getting this rider, you may need to meet certain age and health requirements.

Waiver of premium rider costs varies depending on the age and health status of the applicant. In general, the rider costs an extra $10 to $50 per month. Terms and conditions vary, so always be sure to read the fine print.

Conclusion

Insurance riders are the answer to tailor your policy according to your needs. Before finalizing your decision, always talk to a professional agent who can guide you in choosing the best riders for your policy.

At Local Retirement Group, our team will help you save time and money. Finding the right insurance plan just got easier with our help. When you work with us, we’ll provide you with advice and personalized services. Turn to us if you have questions related to life insurance, auto insurance, annuities, and more.   Contact us to get started  with a free quote.