Page 62 - A Canuck's Guide to Financial Literacy 2020

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Policy Riders

Waiver of Premiums
Certain life insurance policies have waiver of premium riders which permit the policyholder
to stop paying the premium after they've been disabled for a specified period of time,
usually 6 months.

Accidental Death Rider

Accidental death benefit is an additional payment provided to the beneficiary when death of
the policyholder occurs by accidental means. In addition to the death benefit, there could be
an additional payment.

Critical Illness Rider

With a critical illness rider, a lump sum would be paid out if the policyholder is diagnosed
with either cancer, heart attack, stroke, kidney failure, etc.

Cost of Living Rider
This rider will provide an increase in benefits due to changes in the cost of living. The
increases are based on changes in the Consumer Price Index.

Guaranteed Insurability
This rider allows the insured to obtain additional insurance without providing evidence of
insurability.

Family Riders
Family riders allow you to purchase additional coverage for a spouse or a child.

Spousal Term Rider
Spousal Term rider provides the policyholder with the option to obtain insurance coverage
for their spouse. This coverage ends when the policyholder turns 65 years old.

Child Term Rider

Child Term Rider provides the policyholder's children with coverage until they're age 25.
These types of riders give the policyholder the option to add additional life insurance to their
policy.

To recap, life insurance companies have various provisions and riders in place to protect
themselves and to allow the policyholder to enhance the coverage of their policy.