What Is A Term Rider In Life Insurance?

A term rider is an additional policy added to a permanent life insurance policy that provides temporary coverage for a limited period. The rider can be added to the permanent policy at the time of purchase or later, and it can be removed when it’s no longer needed. A term rider can increase the death benefit of a permanent life insurance policy, providing additional protection for a specific time period.

Benefits of a Term Rider

Adding a term rider to your permanent life insurance policy can be beneficial in several ways:

Considerations for a Term Rider

It’s important to keep in mind the following considerations when it comes to a term rider:

• A term rider will increase the premium of your permanent life insurance policy.
• A term rider cannot be added to a policy you already own, and not all policies allow you to remove the rider before its term is over.
• If you’re primarily concerned with cost, a standalone term policy may be a better option.

In summary, a term rider in life insurance can provide additional temporary coverage to a permanent policy, allowing for flexibility to adjust your death benefit over time. However, it’s important to weigh the cost and other considerations before adding this rider to your policy.