đź“‹ What Are Life Insurance Riders?
Riders are optional add-ons that customize your policy. Some are free, others add 10-25% to your premium. Not all are worth the cost—here's what you need to know.
Riders Worth Getting
Accelerated Death Benefit
Often FreeAccess part of your death benefit (typically 25-75%) if diagnosed with terminal illness. Use it for treatment, bucket list, or family needs while alive.
Worth it? Yes—usually included free. Essential protection.
Waiver of Premium
Small CostIf you become disabled and can't work, insurance company pays your premiums. Policy stays active without you paying.
Worth it? Yes—typically adds 3-5% to premium. Protects your policy if you can't work.
Guaranteed Insurability (GIO)
Moderate CostBuy more coverage later without another medical exam. Good for young buyers who expect their needs to grow.
Worth it? Yes for young, healthy buyers. Locks in insurability regardless of future health.
Worth It For Some People
Child Rider
Covers all your children (current and future) under one small policy, typically $10K-$25K. Can convert to their own adult policy later without medical exam.
Worth it? Maybe. Very cheap (~$5-10/month) and guarantees kids' future insurability. Skip if you'd rather get standalone child policy.
Term Conversion Rider
Convert term policy to permanent (whole life) without new medical exam. Useful if you develop health issues during term.
Worth it? Check if it's included free. Don't pay extra unless you specifically plan to convert later.
Return of Premium (ROP)
Get all premiums back if you outlive the term. Sounds great, but costs 30-40% more in premiums.
Worth it? Usually no. You'd do better investing the premium difference yourself.
Riders to Skip
❌ Accidental Death Benefit (AD&D)
Doubles payout for accidental death. But only ~5% of deaths are accidental. Better to just buy more base coverage than bet on how you'll die.
❌ Premium Financing Rider
Complex arrangements to borrow against policy. Usually only makes sense for very high-net-worth individuals. Avoid for typical buyers.
❌ Inflation Protection Rider
Increases coverage with inflation but also increases premiums. Usually cheaper to just buy more coverage upfront at locked-in rates.
Quick Reference Chart
| Rider | Typical Cost | Recommendation |
|---|---|---|
| Accelerated Death Benefit | Free | âś“ Get It |
| Waiver of Premium | 3-5% | âś“ Get It |
| Guaranteed Insurability | 5-10% | âś“ Consider |
| Child Rider | $5-10/mo | Situational |
| Term Conversion | Often Free | Situational |
| Return of Premium | 30-40% | Skip |
| Accidental Death | 10-15% | Skip |
The Bottom Line
Most riders aren't worth the extra cost. Focus on: Accelerated Death Benefit (usually free), Waiver of Premium (cheap, valuable protection), and Guaranteed Insurability (if you're young and expect growing needs). Skip return of premium and accidental death—they're usually bad value.