The Fine Print of Insurance

Many clients don't recognize how versatile a tool insurance can be within a typical financial plan. And it's not just the policies themselves that are versatile. Every insurance policy has optional features that can be added on, called "riders," that can be customized to your specific needs.

Some commonly available riders are:

• Accelerated Death Benefit. If you're diagnosed with a terminal illness, you can get part of the life insurance proceeds while you're still living to help with healthcare expenses. And if you leave the policy in place, your loved ones will still get something when you eventually pass on.
• Additional Purchase Option. If you can't afford the amount of life insurance you need at the time you establish your policy, you can add on an Additional Purchase Option. This allows you to permanently add more insurance later without having to prove your continued insurability.
• Waiver of Premium. If you become temporarily unable to work and can't afford your premiums, you can stop paying until you're back up and running.
• Return of Premium. This policy allows for a refund if it goes unused. If the policy hasn't paid a death benefit by a specific pre-determined point in the future, it can be cancelled, and the payments returned to the owner.
• Term Insurance. Suppose you have a permanent cash value policy and a temporary need for a fixed amount of additional coverage. In that case, this allows you to add more term coverage to your existing policy for a specified period, potentially saving you the time and additional costs associated with purchasing a separate policy.