Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 5: Riders - Coggle Diagram
Chapter 5: Riders
CI Rider
Additional
Acceleration
Features
No cash value
24/7 worldwide coverage
Eligibility
Meets
survival period
requirement
Period from diagnosis
of covered CI (usually
30 days
)
Meets
waiting period
requirement
Illness diagnosed usually
at least 90 days
from issue date
Prevents anti-selection
Severity-based CI
Exclusions
HIV/AIDS
Pre-existing illness
Congenital illness
LIA
Factors
Features
additional cover at lower cost
Riders cannot be dropped by insurers
as long as premiums are paid
Can refuse to reinstate rider at same time
as policy if policy has lapsed
Term Rider
Types
Payout Benefit
Guaranteed Insurability Option
Level Term Rider
cost is usually cheaper than a separate
term insurance policy for same amount
Family Income Benefit Rider
considered decreasing term rider because
accumulated income decreases with later claims
Decreasing Term Rider
used by policy owner to protect
mortgage at lower cost
increase coverage
under basic policy
Can only be attached
to permanent policy
Accidental Death Benefit Rider
Eligibility
Occurs before rider expires
(when LI turns 60?)
Additional payout if life insured
dies of an accident
usually same as SA hence
aka
double indemnity
Total Permanent Disability
Waiver of Premium
Exclusions
intentional self-inflicted
injuries
injuries suffered on
private
aircraft
injuries in military service
during war
injuries suffered
commiting crime
Waiting period of 6 months
to ensure TPD criteria met
Definition
Loss of sight in
both eyes
Loss of
one eye
and use of
one limb
Loss by severance
both hand
both leg
one hand one leg
Hospital Cash Benefit Rider
Waiting period
Limit of 90 days hospitalisation
Payor Benefit Rider
insurer will waive all future premiums
until child reaches specified age