What Does A Term Life Rider Offer Be Insured?

If you’re looking for a way to maintain some life insurance until you die and your needs will decrease over time, a permanent life insurance policy with a term life rider might be a good option.

Benefits of a Term Life Rider on a Permanent Life Insurance Policy
Provides a larger payout if you die while your children are still dependents
Helps pay for a mortgage or student loans if you die before your debt is paid off
Cheaper option than buying a standalone term life policy now and a whole life policy down the road

However, note that permanent life insurance types are significantly more expensive than term life insurance policies and adding a term rider will further increase your premium. If cost is your primary concern, you might instead consider a term life policy to cover your beneficiaries’ immediate needs.

Typically, you won’t be able to add a term rider to a policy you already own. Most companies and policies do allow you to remove a term rider from your permanent life insurance policy before the rider’s term is over.

On the other hand, if you’ll need the flexibility to increase your death benefit over time, consider a guaranteed insurability rider.

Before purchasing, check with your insurance company for their policy on removing a rider and to determine the best policy for your needs.