Types of Life Insurance Rider (1)

1. Automatic Premium Loan (APL)

APL is a feature set that if your policy has a cash value, the insurance company will pay your premiums using the cash value if you do not pay, either because you forgot or accidentally. For many policyholders, taking this option is a wise action. Remember that insurance is protection. Do not be protected just because you do not miss a payment or experiencing temporary financial difficulties due date of payment of premium.

2. Waiver of premium (premium exemption)

Insurance policy with a long term payment usually offer this feature. Waiver of premium guarantee that if you experience total and permanent disability, you are exempt from premium payments. The insurance company will pay the rest of your life insurance. This feature must be selected when you apply for your life insurance.

You usually have to wait six months from the start to be disabled before benefits are paid. Read carefully the terms and conditions of this rider and discuss with your agent. The definition of total permanent disability varies in each policy. Some insurance companies exempt premiums if you can not work according to education, training and experience (own occupation). Others are exempt only if you are unable to work in any profession (any occupation). Others combine the two, such as the release of a two-year premiums if you can not work according to your profession and thereafter exemption is only given when you can not work at all. The insurance company will conduct its own medical tests to make sure that you are disabled and can not work.

Rider is usually quite expensive, can make your premiums 5-10 percent more expensive. For many policyholders, the rider is not too exciting. You might be better enhanced protection disability insurance (disability insurance) that gives you benefits if you become disabled. Some of the benefits that you can use to pay premiums. However, if you do not have disability insurance, this rider can be a convenient means of protection disability without having to buy a separate disability insurance policy.