What is Riders?

Riders is the term used in the insurance business for options that you can purchase as extras. Riders are some of the most important parts of the policy. When you purchase a life insurance policy, pay special attention to the riders being offered. Most riders cost you additional fees. But one, an automatic premium loan, is almost always offered to you at no charge if you have a cash-value policy (whole life or universal life) and you check off the box that requests it. With this rider, the company pays your premium from your cash value if you don’t pay, either because you forget or because the payment is never received.

For most insurance policyholders, taking this rider is a smart decision. Remember, insurance is protection. Don’t get caught without protection just because your check gets lost in the mail or you forget to send it in.