Riders: the optional parts worth asking about

Common life insurance riders

Availability, cost, and terms vary considerably by insurer, so treat these as things to ask about.

• Waiver of premium — premiums are waived if you become disabled under the policy's definition
• Accelerated death benefit — access to part of the benefit on a qualifying terminal or chronic diagnosis
• Child rider — a small amount of coverage on children
• Term conversion — the right to convert to permanent coverage without new underwriting
• Guaranteed insurability — the right to buy more coverage later without underwriting

Riders that restrict rather than add

Not every rider is an addition. An exclusion rider removes coverage for something specific — a hazardous activity, or a particular condition.

Those are usually offered as an alternative to a higher premium, and it's a real choice: cheaper coverage with a hole in it, versus fuller coverage that costs more. Which is right depends on how likely you are to need the excluded part.

Questions to ask about any rider

• What exactly does it pay, and when?
• What's the precise definition that triggers it?
• What does it cost, separately from the base premium?
• Does it expire before the policy does?
• Can it be added later, or is now the only chance?
• What would make it not pay?

The definition is the whole thing

Riders that pay on a condition — disability, terminal illness, chronic illness — are entirely defined by their trigger wording. Two riders with the same name can behave very differently.

Ask for the definition in writing, not the summary. That's where the answer lives.