Life insurance rider

An insurance rider is an amendment, change or addition to your insurance policy. Not to be confused with riding on horseback – sorry folks – life insurance riders can get additional coverage, amended terms, or insurance to cover a certain event.

Sometimes referred to as an insurance endorsement, riders offer an affordable way to customize your policy as there is little underwriting involved. You may also hear the term ‘rider’ when taking out insurance on a car, a rental unit or a home.

Types of insurance riders

Here are some of the ways you can insure you and your loved ones with a rider.

Term Rider – Everyone’s financial responsibilities change over a time, and a Term Rider gives you the chance to get additional coverage for shorter periods to suit your circumstances. For example, you might have a 30-year base policy, but you can buy a 20-year rider to cover your mortgage, or a 10-year rider for the duration of your child’s education.
Accelerated Death Benefit Rider – In the sad event of a terminal illness, the insured person can receive their death benefit while they’re alive. If they have a qualifying terminal illness, they can receive up to $500,000 or 75% of the policy's primary death benefit (whichever is lower).
Children’s Rider – Families with one or more children can get life insurance to cover their kids. With a single rider, your children can be protected up to their 25th birthday or the insured person’s 65th birthday (whichever comes first).

Do I need a life insurance rider?

Riders offer a great way to adapt and personalize your insurance policy according to your changing needs. No one’s life is set in stone, and at various key moments – such as having children – you may wish to amend your life insurance to reflect your circumstances. Sure, you might think riders are just a money-making scheme, but in reality, riders can help you save money compared to buying a separate policy. Of course, if you feel that some ‘what if’ scenarios don’t apply to you – for example, if you don’t have children – then you may not need a rider. Everyone is different, and you should review the life insurance riders on offer before you make a decision.

When should I get an insurance rider?

Does your partner or children depend on your income? Then you should definitely consider taking out a rider to give yourself the greatest possible insurance coverage, customized to your needs. As your financial responsibilities change over time, there are certain milestones – such as buying a property or getting a promotion – when taking out a rider may be smart, especially if you can comfortably pay the premiums. Ultimately, the greater your coverage, the greater your peace of mind.

Discover our affordable Riders and get the right level of cover for you and your loved ones.