Posted by Amy Carbone on Feb 22, 2023 9:00:00 AM
Life insurance is a common choice for many dentists as a way to provide stability throughout their career. For example, life insurance can provide their family with financial stability in the event of their untimely death, and life insurance policies for buy/sell agreements provide continuity for your dental practice in the event of a partner's death.
While life insurance is common, everyone is unique, which is why many life insurance policies come with options to help dentists tailor a policy to their own personal, familial, and career needs. Aside from being able to select a term or permanent life insurance policy to meet your current situation, you will most likely have the choice to add riders to close the gap in your coverage. Below, we'll discuss some of the different types of life insurance options:
What Life Insurance Policy Riders Should You Consider?
Waiver of Premium Rider
A waiver of premium rider may waive your policy premium in the event that you become disabled.
This can benefit you by allowing you to maintain coverage without having to make premium payments during a time of uncertainty and financial hardship. The qualifications to use this rider vary and will be determined by the policy provider.
Accelerated Death Benefit Rider
An accelerated death benefit rider may advance a portion of your death benefit in the event you’re diagnosed with a terminal illness to help you make the most of the rest of your life.
In this situation, this rider can provide you the freedom to take more time away from work to spend time with family and friends, ensure your medical costs are managed, and provide overall financial stability.
Insurance companies offer this kind of rider with little (or maybe no) increase in premium. Qualifying terminal illnesses will be defined in your life insurance policy. At death, the amount payable to your beneficiary will be reduced by the amount accelerated and possibly interest charges.
Accidental Death Rider
An accidental death rider is an addition to your policy that can increase the amount of your benefit payment if your death is the result of an accident.
This can provide your family with more financial stability in the event of this unexpected tragedy.
Guaranteed Insurability Rider
A guaranteed insurability rider gives you the ability to purchase additional coverage during a specific period even if you have developed health issues that would normally present a problem when trying to obtain additional life insurance.
This is helpful to add to a policy when you’ve experienced a major change in your life, such as an increase in income, a change in marital status, or the development of a new health concern.
It’s important to note that these riders may expire at a certain age and are typically available on permanent life insurance policies, but it’s important to discuss these details with your coverage provider.
Long-Term Care Rider
A long-term care rider gives you more opportunities to use the benefits that are associated with your life insurance policy, such as helping accommodate costs associated with your long-term care needs. The rider provides for an acceleration of some of the policy's death benefit for long term care services. When considering Long Term Care Rider, you should review eligibility requirements for long term care benefit payments as outlined in the policy with your agent.
Depending on your coverage provider, it may be possible to purchase a long-term care policy individually, but you may also benefit from using a rider for your life insurance policy. These riders are typically only available on permanent life policies, and you should work with your provider to determine the best options for your coverage.
Are Life Insurance Riders Right for You?
One of the most important aspects to consider when adding a rider to your life insurance policy is the long-term financial benefit. Since these riders are likely to increase your monthly insurance premium, it’s crucial to complete a cost-benefit analysis for the specific additional coverage you are considering.
If you believe that the long-term benefits of the policy and riders will outweigh the additional premium costs, then riders may be the best decision to help secure financial stability throughout your career.
Use the Right Coverage To Protect Your Dental Career
You spend most of your life building your dental career and legacy, so it’s important to make sure you protect it by providing your family with financial stability. Whether you’re in training, in practice, or near retirement, Treloar & Heisel has more than 50 years of experience helping dental and medical professionals find the right coverage for yourself and your practice.
Contact us today to discuss your coverage needs and find the right policies for you!
About Treloar & Heisel
Treloar & Heisel is a financial services provider to dental and medical professionals across the country. Our insurance and wealth management divisions assist thousands of clients from residency through retirement. We strive to deliver the highest level of service with custom-tailored advice and a strong national network.