Buying an insurance policy is in some ways like buying a tool set. The tools in the set are designed to perform specific jobs when you need them to get the task done. If the tool set is lacking a variety of tools, then the jobs it can accomplish are limited. You wouldn’t want to try to hammer in nails with a set of pliers, when a hammer is what you really needed. By the way, it doesn’t work very well.
When purchasing a life insurance policy, one must look at not only the need, but what type of product fits that need best and what functions the product offers to accomplish the task at hand. Insurance companies offer base policies and additional riders or features that meet a client’s specific situation. Riders to a base policy are like extra tools in the tool set. Most insurers include rider packages in their offerings that allow policyholders to tailor their insurance protection to provide more functionality. Hermann Sons Life is no different, so let’s explore the policy riders we offer.
The Insurance Protection Rider (IPR) - This rider allows the purchase of additional insurance later in life without requiring proof of insurability. This important policy option guarantees the policyholder the right to purchase additional coverage up to six times between the ages of 25 and 40. It is available on our Annual Flex Life and 20-Year Pay plans, and must be purchased at the time of application. The minimal cost of the rider is greatly offset by the option to purchase additional coverage, even if you develop some serious medical issue that would otherwise make you uninsurable.
A few years back, I had a client who purchased a whole life product for one of two sons. I offered the IPR Rider, but because the older son did not have it, the client and mother of the boys did not elect to take the rider. A few years later, the older son developed muscular dystrophy, a progressive, incurable condition. What the young man had in insurance protection is most likely the only cost-effective life insurance protection he will ever have. This is one of the best rider options for a base policy.
Accidental Death Benefit Rider (ADB) – This rider provides a death benefit of twice the face value of a policy if death is caused by an accident ($250,000 maximum for all coverage). Anyone who drives, uses commercial air travel or engages in a hazardous occupation should consider the ADB Rider. Additionally, accidents are the leading cause of death for children in the U.S., so this is a rider that should be seriously considered when purchasing future insurance protection for a child. This rider can be purchased at the time of application or added after age 5 and is payable until age 70. The ADBRider is available on most plans (expect single premium products) and can help offset significant medical expenses incurred prior to the death of the insured.
Waiver of Premium Rider (WP) - This rider provides for the waiver of the policy premium if the payor of the policy becomes disabled (total and permanent) or dies while the rider period is in force, which is up to age 60 for the payor or the attained age of 25 of the insured, whichever comes first. It must be purchased at the time of application. Life is full of unexpected events and the consequences that may result. Who will pay the premiums if the policy payor dies or becomes permanently disabled? An extra level of future financial protection for your loved ones is provided by this rider, as do all our riders.
Your Hermann Sons Life agent has additional information and provisions for each of these riders and how they can provide that extra level of protection for your insurance policy. Don’t be caught without the right tools in your tool kit. Call us today and find out more at 800-234-4124.