Cost Of Living Riders For Insurance Essay

762 Words Oct 4th, 2016 4 Pages
Special endorsements or riders can be attached to the basic contract depend on the insured’s needs. These provisions add further flexibility to the standard policy provisions. Term riders is the most common rider that allow insured to add some form of term insurance to the basic provisions. Term insurance may decrease the value of the payment, however, it is useful for the temporary use with the combination of long term insurance and for the person difficult to afford long term insurance but need some amount of coverage. Insured also can convert it to the long term without any evidence of insurability. Limitation riders is that insurer add limitations to their policy to minimize risks of liability on the event of the insured’s death within war or aviation activity. Person such as pilots or military people will be covered by war rider or aviation rider with additional premiums. People who practice hazardous occupation or avocation can afford special rider, however, should consider insurer who specialized in high risk coverage because riders cost much higher premiums. Cost of living riders is a term insurance which have a characteristic of increase it coverage each year along with the increase of Consumer price Index. Insured can refuse to increase the coverage by providing evidence of insurability, but they cannot reject increase once it in force. Although accidental death benefit riders provide multiple amount of payment for the accidental death, it is not always necessary…

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