Do you work in an industry where your physical health and well-being is of vital importance? If so, you could benefit from taking out a term life insurance policy that features a disability rider.
A disability rider coupled with a standard cheap term life insurance policy gives you extra coverage in the event that you are disabled or injured in any way that will affect your performance in the workplace. If you work in a factory or outdoors, this type of insurance coverage offers added security. Why face financial ruin in the event of an accident or other circumstances beyond your control when a term insurance policy and disability rider can help you out?
If you're not sure exactly what a “rider” is, read on. A rider is basically an extra feature that gives added value and weight to an existing insurance policy. Both a rider and a standard policy must be purchased at the same time. Riders will override the contents of an existing policy so that in the case where the contents of each conflict, the information contained in the rider will take precedence.
If you want to purchase a rider to add to your existing policy, it will of course cost you more. It may be beneficial to speak to a financial advisor to find out how much extra you should pay for a rider on top of your cheap term life insurance.
Remember though that you are getting extra coverage so if this is important to you, you should be prepared to pay more. If the worst happens and you are disabled or the victim of a serious accident which impacts upon your physical capability to do your job, your life insurance will pay you a set income after you have been unable to work for a specific period.
Purchasing a rider does come with some restrictions. You are unable to purchase a rider that offers an amount that is higher than your average income over the last two years. So you cannot make more money each month through your insurance than you did when you were employed.
The second most important factor to consider is that your disability insurance will only start when other benefits such as those you receive from the state commence. Workers compensation and social security payments may take some time to kick in, so you still need to ensure that you have enough money put aside for a rainy day. Your disability rider will make up the difference after these two payments have been paid of what you would normally make each month as an employed person. This works very well with term life insurance.
A helpful way of looking at a disability rider is that you can offset the extra cost against peace of mind. If your physical health is crucial in your workplace, you can rest assured that if the worst happens, you will be well taken care of when you have a disability rider and cheap term life insurance.