Q: What is a Rider?
A: An additional (optional) Insurance feature for your Contract (Policy). Because such features can only modify ("ride on") an existing Contract, they are called "Riders".
Examples of Riders:
How you pay for the Rider will depend on the details of Rider. There may be a flat charge up-front. More commonly, the Insurance Company will regularly charge you a (small) fraction of your Account Value.
"Rider" usually means "optional". But an Insurance Company may "bundle" some Riders and a Policy into a "standard package". This doesn't guarantee a lower overall cost. It may mean that you can't opt out of the Rider at a later date.
A: An additional (optional) Insurance feature for your Contract (Policy). Because such features can only modify ("ride on") an existing Contract, they are called "Riders".
Examples of Riders:
- Guaranteed Minimum Death Benefit
- Guaranteed Life Income Benefit
How you pay for the Rider will depend on the details of Rider. There may be a flat charge up-front. More commonly, the Insurance Company will regularly charge you a (small) fraction of your Account Value.
"Rider" usually means "optional". But an Insurance Company may "bundle" some Riders and a Policy into a "standard package". This doesn't guarantee a lower overall cost. It may mean that you can't opt out of the Rider at a later date.
