Every life insurance policy comes with a core benefit: the death benefit. But what if your clients want coverage that adjusts to their health, family, or financial situation?
That’s where life insurance riders come in.
Riders are optional add-ons that enhance or modify a base life insurance policy. For brokers working with high-net-worth clients, riders can transform a simple policy into a strategic financial tool. Whether it’s protecting against chronic illness or preserving premium flexibility, the right rider can make a policy far more powerful.
A life insurance rider is a contractual provision that’s added to a life insurance policy to provide additional benefits or modify coverage.
Think of them like upgrades: they let clients tailor their policy to fit their personal and financial needs without having to buy an entirely separate product. Riders are typically added at the time of application but may involve additional underwriting or cost depending on the rider and carrier.
Here are five widely used riders brokers should understand—and be ready to explain:
Allows the insured to access a portion of their death benefit if diagnosed with a terminal illness. Helps cover medical expenses or provide financial support during critical times.
If the policyholder becomes disabled and cannot work, this rider waives future premium payments while keeping the policy in force.
Provides term life insurance coverage for the insured’s children. A cost-effective way to provide basic protection for minors.
Pays out part of the death benefit to cover qualified long-term care expenses. Often a more affordable way to secure LTC protection.
Refunds premiums paid if the policyholder outlives the policy term. Often used in term life products to reduce the “use it or lose it” concern.
Provides an additional payout—on top of the base death benefit—if the insured dies due to an accident. This rider can be useful for younger clients, business owners, or those with higher-risk lifestyles who want to increase protection at a relatively low cost.
Pays a monthly income to the insured if they become disabled and unable to work. This rider adds a layer of income protection and is particularly valuable for professionals or high earners who may not have adequate standalone disability coverage.
While standard riders are useful, brokers working with high-net-worth individuals should know which riders provide true value in complex financial plans:
Similar to long-term care but typically more flexible. Allows access to death benefit when diagnosed with a chronic condition affecting daily living.
Allows a term policy to be converted to permanent insurance without medical underwriting—a powerful tool for younger clients or those planning for future estate needs.
These are specific to IULs and allow the client to adjust how and when they fund the policy. Perfect for those with variable income or liquidity events.
💡 Pro Tip for Brokers: Use riders to align coverage with liquidity timelines, tax strategy, and business succession planning.
Not all riders are free—and not all are necessary. It’s the broker’s job to evaluate a client’s specific goals and risk exposure to determine if a rider makes sense.
Key considerations include:
In many cases, the long-term benefits far outweigh the small increase in premium—especially when the rider could save the client hundreds of thousands in care or tax obligations.
Life insurance riders might be add-ons, but the right ones can completely shift a policy’s value—for both the client and the broker designing it.
For brokers, understanding how to use riders strategically is an easy way to differentiate your case design, add value, and better serve high-net-worth clients with complex needs.
At Living Equity Group, we help brokers structure smart, flexible, and powerful policies—riders included.
👉 Want help designing a case with strategic riders? Submit your next client
