Best Answer: A rider is an endorsement to a life insurance policy that either adds additional coverage or limit's the life insurance company's liability for payment of benefits under certain conditions.
Riders can provide more coverage to you, or reduce your coverage in certain situations.
A terminal illness rider provides a portion of the life insurance policy death benefit paid to the insured upon the insured being diagnosed as having a terminal illness that will result in death within one year.
Basically, if you find out you are dying (are expected to die within one year) due to a terminal illness, you can get part of your life insurance policy death benefit paid to you before you die.
This can help you pay for medical expenses, and
other things you may want to do before you die.
This may be a good rider to have on your policy, if you feel the specific cost associated with this rider is a good value for you.
You want to find out exactly how much you are paying per year for this rider, and how much you will receive if you are found to have a terminal illness.
You may find it's a good value. On the other hand, you may feel this is something you can live without having on your life insurance policy.
many times riders offer additional coverage that very few people ever benefit from having on their policy.
I hope that helps you. Best of luck to you.
Hadley · 9 years ago