Policy riders and the optional benefits for life insurance

Commonly called ‘optional benefits’, a policy rider is an add-on to your insurance policy. It provides extra benefits for you to claim on in the future. This is something your insurer or financial planner will need to account for when your policy is being organised.

How could I benefit from a policy rider?

Are you seeking out more comprehensive life insurance? You may find that adding certain benefits to your life insurance gives you peace of mind. Otherwise, a standard policy may suit you just fine.

Do policy riders come at a cost?

Yes. With extra cover comes extra cost. How much it ends up costing largely depends on your existing level of risk. You’ll have to…

1. decide if the extra expense is worth the additional cover, and
2. ask your insurer what this price difference will be.

What are some examples of policy riders?

• Child cover: A cash benefit is paid in the event your child dies, or falls terminally ill.
• Extra rehabilitation: If you need ongoing rehabilitation or additional sessions, this may curb costs.
• Home bed care: The cost to get a proper home care bed can be expensive. This rider can help pay for this.
• Accidental death cover: Your beneficiaries (e.g. dependents) will receive a cash payout if you die by accident.
• Needlestick injury cover: a benefit is paid if you’re pricked by a needle and contract an illness. It is commonly found in insurance policies for healthcare workers.

You can also get waivers for things like…

• Waiting periods: If you can’t claim on your life insurance due to waiting periods, a rider may excuse you from these periods and ensure a lump sum payout.
• Premiums: if you’re unable to work six or more months due to a significant disablement, your insurer may waive your premiums.

Is everyone able to add such benefits to their life insurance?

No, if you’re considered especially risky to insure, you may not be able to attach riders to your policy (e.g. if you’re over a certain age, or employed in a high risk field).

Additionally, not every insurer supports any or all of the above benefits. Your first priority when getting life insurance is seeking out the right type of cover. After that, ask your insurer about optional benefits.

Ready to get covered? Compare life insurance right now!

The information provided here is general only and does not consider your personal objectives, financial situation or needs. Before you decide to purchase a product, it is important to read the relevant PDS.