Other Considerations

While most customers focus on the coverage start date, coverage amount, and price when selecting Final Expense insurance, these aren't the only factors that can impact your decision. It's important to be aware of additional features offered by insurance carriers, particularly Riders—optional add-ons that can provide extra benefits or customization to your policy.

Riders are optional provisions or add-ons to your policy that can provide additional coverage or benefits, depending on the circumstances. Some riders come at no additional cost, while others carry a small premium. It's essential to consider these riders as part of your decision-making process, but also understand that not all riders are available with every type of policy. Most riders are offered with Immediate Coverage plans, and are typically not available with Graded or Guaranteed Issue policies.

Below are two of the most common riders you may encounter with Final Expense Life Insurance policies:

Cost: Typically Free
What It Does: This rider adds a provision to your policy allowing you to access a portion of your death benefit if you're diagnosed with a terminal illness. It can provide significant financial relief in the final stages of life. How Much Can You Access? Typically, the rider allows you to access up to 50% of the death benefit.

How Can You Use It? The funds can be used for any purpose—medical bills, travel expenses, or simply as a way to enjoy your final time in a way that feels right for you. There are no restrictions on how the money is spent, providing you with flexibility when you need it most.

Cost: Not Free (Typically a Small Additional Premium)
What It Does: The ADB rider provides an additional payout in the event of death from an accident, such as a car crash, plane crash, or other non-medical causes. This added benefit can help provide more coverage for your family or beneficiaries, especially if an unexpected tragedy occurs.

How Much Is the Additional Benefit? Typically, the ADB rider adds 100% of the standard coverage amount for death due to natural causes.

What’s the Catch? While the rider is typically inexpensive, some carriers may offer additional coverage options that could increase your premiums. Be sure to assess whether the added benefit justifies the cost.

Exclusions:

• Be aware that some policies may exclude certain high-risk activities from the ADB coverage, such as scuba diving, skydiving, or other dangerous hobbies.

It’s important to understand that while some riders are “free,” they may still impact the overall cost of your policy. For example:

• Carrier A might offer a free Terminal Illness Rider but charge $40/month for coverage.
• Carrier B might cost $30/month without offering the Terminal Illness Rider.

While you might not be paying extra for the rider with Carrier A, the overall monthly premium is still higher. The "free" rider can, in some cases, make your premium more expensive than a policy without it.

We generally don’t recommend specific riders unless they are relevant to your situation. If two policies are very similar in coverage amount, price, and start date, the presence of a rider might make a difference in your final decision. However, we always remain transparent and upfront about what each rider adds to your policy and how it may affect the cost.

Unfortunately, Riders are one of the most common tactics used by agents to upsell policies because they can be subjective and often add perceived value to a policy that might not be necessary for everyone. It’s essential to fully understand each rider before agreeing to it, especially since they can add to your premium, sometimes making a policy  more expensive than it initially appears.

At the end of the day, the decision to add a rider should be based on your specific needs, not just what a carrier offers. If you don’t need an accidental death benefit or have no interest in a terminal illness rider, we’ll help you avoid them to keep your premiums affordable.

We are always here to provide you with clear, honest advice to make sure you're selecting the best policy for your unique situation. Riders can be a helpful tool, but only if they truly add value to your coverage.

If you’d like more details on how riders work or want to explore your options, we are here to guide you through the process.