Riders for Life Insurance Over 50

by Sam Jones Content Creator and Link Builder
Life cover for mature adults is affordably available with guaranteed acceptance through a number of providers, irrespective of an applicant’s medical condition. For a low monthly price, the insured can secure limited benefits to address funeral costs. Adding on riders for life insurance Over 50 will bump up the price of the premium a bit, but may be well worth the added investment.

Not all riders are available for 50-plus style life cover plans, as each company decides which riders, if any, to offer its clientele. Here are some of the most popularly available life assurance riders with brief overviews explaining the purpose of each one.

Funeral Benefit Option

This is the most commonly offered rider for life cover plans for older adults. Some companies throw this preneed benefit rider in at no charge, as an appreciation gift to the policyholder for signing on with the company’s product. The funeral benefit could also be purchased outright, generally in a lump sum, though, rather than through payments. This type of rider is usually arranged in conjunction with guaranteed acceptance plans through cooperation with a specific funeral company, typically a large firm with a nationwide network. With this rider, the policyholder agrees in advance to engage the services of the named funeral company. When the time comes, instead of this benefit’s proceeds paying out to the policyholder’s heirs, as is the case with a general life cover payout, the disbursement from the funeral rider benefit goes directly to the company handling the final arrangements for the deceased.

The benefit of this rider is often quite small; commonly around £250, which is nowhere near enough to pay for all funeral expenses. But if the rider is offered at no charge, then that’s £250 free money to use toward final arrangements, and it doesn’t hurt to have extra funds available to help pay expenses. If the funeral benefit option is not offered to policyholders for free, unless the additional cost is extremely negligible when compared with the benefit’s payout, then it’s probably not worth adding on.

Hospital Benefit

This rider is intended to address costs relating to hospitalization that aren’t met by your health care insurance. Monies can go toward physician services, medications and other related needs as spelled out in the rider’s conditions.

Accidental Death

An accidental death rider would assure the disbursement of monies if the insured passes unexpectedly due to circumstances arising from an accident. This fund is in addition to the regular benefit paid out from the life cover policy upon death. If the insured passes away from natural causes, this benefit is not triggered and monies from this fund are not paid out.

Often, the accidental death benefit is combined with an accidental dismemberment and/or disability benefit, which pays in the event of a permanent disability or a lost limb, eye or other body part.

Disability Income

Similar to but different from the disability benefit, the disability income benefit is intended to replace income streams lost due to the inability to carry out regular work duties that bring money into the household.

Serious Illness

Should the insured be diagnosed with a critical illness of a serious nature, this rider would disburse a portion of funds to the policyholder. These monies can be used for treatment, counseling or other medical or daily needs. Disbursement would be contingent upon the diagnosed illness being listed on the company’s roster of covered conditions.

Terminal Illness

This rider releases a greater portion, or in some cases, the entirety of the policy’s benefits, in the event a terminal illness listed on the company’s roster of conditions is diagnosed by a physician. Funds released for this payout are no longer available for payout upon death.

Removal and Reattachment of Riders

It’s important that you ask prospective insurance providers about which, if any, riders for life insurance Over 50 are included or available to mature applicants. Just because a rider isn’t overtly mentioned in the main overview of a policy’s features doesn’t mean it is unavailable for the mature policyholder. When in doubt, ask.

Do some maths and guesswork to determine whether riders are worth the extra outlay. Make your decisions carefully, though, because if you accept a rider, and later decide to drop it, but then decide to add it back in again, you may not be granted the ability to return it to your portfolio. Some riders, like the funeral benefit option, are one-time-only offers. Get the details before you make the big decisions.

Sam Jones the author suggests that readers visit the uSwitch, personal finance advice and guides pages for more info on life insurance over 50.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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