Life Insurance Riders

[icedcoffee]

Help me wrap my head around this...

Looking at life insurance for someone and the quote we got has 2 riders.  I can't decide if I should go ahead and pay for them.  While they sound like small dollars, due to some medical issues the premiums are really high to start with so I guess I'm debating whether we can save a few bucks by declining these: 

1.  Waiver of Premium - $45/year - Premiums will be waived while the insured is totally disabled in accordance with the terms of this rider, if the

disability is continuous for at least 6 months.  The definition of total disability under the rider is based on the insured's "own occupation" for the first 5

years of disability.
2.  Extended Conversion Rider - $75/year - This rider extends the conversion period to the end of the policy's term period.  If this rider is not elected, the conversion period would be 5 years.

What say MM?

[chimera]

For #1 -- check the paperwork involved with getting it honored.

For my policy it was 5 years of ALL medical records to get it waived, it wasn't an rider it was part of the policy. At that point, I was going to pay more in page charges between multiple doctors, hospitals, clinics, headaches, and stress than I was ever going to get back. My premiums weren't very high as we'd set everything up before I got sick.

[WOUNDTIGHT]

For #1, it would depend on your other disability coverage. If you were to become disabled, would your life insurance premiums be no longer affordable, or could you absorb that into your budget, what you'd be paid on your DI policy?

For #2, I feel like that's company dependent. What kind of permanent policies do they offer? Is it a strong company?

[icedcoffee]

Sept 13, 2016 12:52:53 GMT -5 WOUNDTIGHT said:

For #2, I feel like that's company dependent. What kind of permanent policies do they offer? Is it a strong company?

It's Guardian.  I haven't looked into their permanent policies.  I'll have to do some research.

[shevacc]

My gut says skip both. I'm assuming this is for a term policy?

I'm pretty sure #1 is built into my policy too. But like PP mentioned, it seems like it could be a pain to actually follow through on in practice. Unless I'm mistaken, they're asking for $45/year to insure against your premiums (I imagine less than $1k/year) which seems steep.

I'd skip #2. If you don't want whole life coverage now, I don't think you'll want to pay for the possibility of choosing it later. The only reason I could think of for this would be if there's some reason you may NEED insurance 20 years from now once the term expires, but I'd imagine just getting a longer term policy now would be a better value.

[icedcoffee]

Sept 13, 2016 14:08:20 GMT -5 shevacc said:

My gut says skip both. I'm assuming this is for a term policy?

Yes--this is a 30 year term policy