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Understanding term life insurance riders

What is a life insurance rider?

A term rider is an easy way to customize your life insurance policy by supplementing your main policy with temporary coverage that “rides along” when you need it most. These policy add-ons are designed to cover you for a specified number of years, usually when you are facing additional financial obligations that would otherwise require short to medium-term life insurance.

mono-white-two-people-iconMaking it real: Extra coverage when your expenses suddenly double

The Johanssons were married for exactly one year when they found out they were pregnant — with twins. While they were busy planning to buy two of everything, they had peace of mind knowing they added supplemental term rider coverage to their policy that they could activate and extend as needed — all the way to helping pay for two college educations if needed. Gulp.

How term riders work

While long-term insurance can offer enough coverage at an affordable rate, it’s rarely a one-size-fits-all solution. Your circumstances will change from year to year in ways neither you, nor your life insurance advisor can predict.

A life insurance rider can help you create a more flexible protection plan for you and your family. By adding a rider to your current 10 to 40-year term life insurance policy you get added coverage early in your policy and don’t end up paying for coverage when you don’t need it.

Term riders are there to congratulate you and cover you.

So let’s say you just got a big promotion accompanied by a nice salary increase — which is perfect because you just bought your first house. At Legal & General America, you can choose to add additional coverage for these events and stack your term rider on top of your base term policy for 10, 15 or 20 years. We’re here with you every step of the way.

Best of all, with our stackable coverage, you only have one policy to manage. You can select up to three different term riders to include on top of your policy, and each one will automatically drop off when the coverage period ends, adjusting your payments to the new coverage amount along the way. You don’t have to reapply or adjust your policy at all -- the layers are built in from the start so you can set it up and let it work for you.

 

We call it “stacking,” a way to customize your term life policy with riders so you don’t end up paying for coverage when you don’t need it.

Do I need a term rider?

If you’re looking for an easy, flexible and affordable way to add more protection for your family when you need it, a term rider is a great solution for you:

  • Save money – Unlike most carriers, Legal & General America offers term rider coverage with no additional policy fees.
  • It’s easy – We consolidate your billing, rolling everything into one easy regular payment.
  • Multiple choices – You can add up to three term riders to your base policy in durations of 10, 15 or 20 years.
  • Convertible – You can turn an active rider into a universal life insurance policy, giving you lifelong, permanent coverage.

If you’re planning on getting term life insurance and you expect your financial obligations to lessen over time, then term riders are a great way to save money and get the coverage you need.

We also offer other types of riders designed to cover specific needs:

  • Accelerated Death Benefit Rider (included in all our policies) – Allows your policy to be paid out earlier if you have a terminal illness.
  • Children’s Rider – Designed for parents who want to provide life insurance for their children, up to the age of 25.

Can I remove a term rider from my policy?

With our term riders, you can remove a term rider before its expiration date, but you won’t be able to reinstate the rider once you made that decision. If you want to extend your policy length, you can benefit from our conversion period which lasts 10, 15 or 20 years, depending on which rider you’ve added.

How to add a term rider to your life insurance

Term riders can only be added at the start of your life insurance policy during the application process. Get in touch with a licensed member of our team to customize your coverage.

Find an advisor near you or fill out a short form to get an instant quote!