3 Life Insurance Insurance Add-Ons That Could Be Worth Paying For

Life insurance coverage is one of the most important types of insurance a person can buy. Surviving family members do not need to be left with an empty bank account when coping with the death of someone they loved who provided them with financial support. A death benefit can help those survivors maintain their quality of life, so they don't couple financial devastation with emotional devastation.

When buying life insurance, consumers need to decide exactly what kinds of protection to purchase. Specifically, it will be important to determine what riders, if any, should be added on to a standard life insurance policy. To help make that choice, here are a few life insurance add-ons that could be worth paying higher premiums for.

1. Guaranteed insurability

There may come a time in a policyholder's life when they want or need to buy additional insurance. Say, for example, a new baby has arrived and more money would be needed to care for the child in the event of a parent's death. Unfortunately, if the policyholder's health has changed, getting additional coverage may not be possible.

That's where a guaranteed insurability rider comes in. This would allow the policyholder to buy more coverage during a set period without having to go through underwriting again. Usually, these riders only allow guaranteed insurability until a certain age -- but they could still be well worth buying for anyone who anticipates major future life changes that will alter their coverage needs.

2. Accelerated death benefit

Being diagnosed with a terminal illness can come with a host of expenses and can also often result in a loss of income when medical issues make continuing to work impossible. An accelerated death benefit rider could prevent serious financial stress at a time when a policyholder's health should be their primary concern.

With an accelerated death benefit rider, the covered policyholder can access a portion of their death benefit before passing away. While this will reduce the payout surviving beneficiaries get after a death, it still may be well worth accessing the money early when faced with a serious medical issue and, likely, high medical bills needed to address it.

3. Waiver of premiums

Life insurance premiums aren't terribly expensive for those who buy term life insurance. But, there's still a monthly cost to be paid in order to keep a policy active and avoid a coverage lapse.

Unfortunately, sometimes when a person becomes disabled or sick, paying for life insurance becomes a burden. That's where a waiver of premium rider comes in. This type of add-on would allow a policyholder to stop making payments while still keeping coverage if they have a qualifying disability that interferes with their ability to work.

The situations in which premiums can be waived vary by life insurer, so it's important to understand the details. But, this rider can definitely be worth paying for to ensure an illness doesn't lead to a loss of coverage when it's needed most.

Each of these riders won't add much to the cost of life insurance, but they can offer invaluable protection and ensure surviving family members are cared for financially in their time of tragedy.