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Riders Available with Life Insurance for Seniors

Waiver-of-premium Rider with Life Insurance for Seniors

The waiver of premium rider is a popular option with term and whole life policies. It is relatively inexpensive (a few cents per $1000 of life insurance) and provides for the payment of your life insurance premium if you are totally disabled before age 60 for longer than six months. Most riders provide for the premiums being paid as long as you remain disabled.

Be sure to read carefully the insurance company’s definition of total disability. You want a rider that says your premiums will be paid if you cannot engage in the occupation for which you are trained and in which you are employed rather than in any type of employment. The broader definition of disability stipulates that you must be totally disabled and unable to work at all.

Guaranteed-Insurability Rider with Life Insurance for Seniors

The guaranteed-insurability option guarantees the insured will be able to renew term policies or purchase additional whole life or universal insurance at regular intervals without providing evidence of insurability up to a specified age limit. The main benefit of the guaranteed insurability option is that it allows the insured to keep life coverage in force or add to it even in the event of a health change that might render him or her uninsurable without the rider.

However, if you are already older than specified age limit then the rider won’t be of any benefit to you. You’ll be required to have a medical exam each time you wish to renew or increase your life insurance policy.

Accelerated Death Benefits Rider with Life Insurance for Seniors

The accelerated death benefits rider allows the insured to collect some or all of the life insurance proceeds while still alive if the insured is suffering from a terminal or catastrophic illness, or in some cases requires long-term care. The payout is discounted by the time value of the money and the face amount of the insurance and its cash value are reduced by the payout.

This option can provide much needed cash for medical or long-term care expenses if the insured needs it although the benefit of having the cash to cover these costs has to be balanced with the insured’s desire to provide a payout to beneficiaries on his or her death.

Long-term Care Rider with Life Insurance for Seniors

Long-term care riders provide the option of taking a payout to cover the costs of long-term care for seniors in a nursing home or other such facility, or, in some cases, home care. The payout can often be paid monthly, this is advantageous since stretching out the payout lessens the time-value discount, and provides more money for the insured.

If you are concerned about covering the costs of long-term care while still providing a benefit for your heirs you might want to balance the costs and benefits of a long-term care insurance policy in addition to your life insurance rather than a rider that allows you to use your life insurance to cover long-term care costs.

Evaluate Options Carefully

When determining which life insurance for seniors and which riders are right for your particular situation it is always advisable to seek the counsel of a trusted financial advisor.

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Check out these sites when looking for more info on life insurance for seniors and long-term care for seniors.

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