Accelerated Death Benefit Riders

Accelerated Death Benefit Riders

These riders provide for the payment of benefits before the life insured dies. These are called Living benefits. Accelerated death benefit is a pre-payment of benefits and not an additional benefit.  The death benefit paid when the life insured dies will be reduced by any accelerated benefits paid prior to death, plus accumulated interest to the date of death.

Types of Accelerated Death Benefit Riders:

  1. Terminal Illness Rider: here an advance payment from the the death payment is pulled out and paid upon the diagnosis of a terminal condition.
  2. Dread Disease Rider: here lump sum benefit is paid if the life insured is diagnosed of serious diseases.
  3. Long Term Care Rider: is a monthly benefit if the life insured requires care at home or at a facility. In conditions when the life insured cannot perform at least 2 of the activities of daily living (ADL): bathing, dressing, feeding, toileting, continence, getting in and out of bed or a chair ( transferring position).

Please feel free to contact us at aman@yourinsuranceguy.ca or at 1 416 509 2540 to know how this addition can benefit your insurance planning process.

 

Waiver of Premium Rider

Under this rider, if the policy owner becomes totally disabled, he or she will not be required to pay the premiums on the life insurance policy. The policy owner must be disabled for a period specified in the rider, usually 3 to 6 consecutive months, before premiums will be waived…

 

Accidental Death and Dismemberment Rider

Under this rider, the insurance company pays additional benefits if the life insured dies an accidental death or loses a limb or sight because of an accident. The increased death benefit is typically two times the stated death benefit, which is why AD&D coverage is sometimes called Double Indemnity

 

Guaranteed Insurability Benefit Rider (GIB)

This rider gives the policy owner the right to buy additional insurance at a guaranteed price, upto a specified amount, without proving insurability, even if the life of the life insured has deteriorated…

 

Prepared by:  Aman Kapur

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