In today’s video, we are going to look at three common riders found in many term life insurance policies in Canada.
Now importantly, we’re not going to look at renewable and convertible term, and we’re not going to look at the exchange option, we’ll cover those in their own video.
First up is the accidental death benefit rider. This rider pays an additional death benefit if you die as a result of an accident and it doesn’t pay if you don’t die as a result of an accident. You either need life insurance if you die or if you don’t, you don’t need life insurance typically that pays on how you died, so my recommendation is: skip that one.
The second one up is the disability waiver premium. A disability waiver premium pays your life insurance costs if you’re disabled for at least six months. Properly, what you should really have is a full-featured, full coverage long-term disability policy that covers all your costs not just your life insurance premiums.
Third up is the children’s protection rider. Children’s protection riders provide a small amount of life insurance coverage for all your children. Unlike the other two riders, if you’re looking for a cheap and inexpensive way to cover all your children for small amounts of life insurance, it’s actually a very cost-effective option.