When you buy life insurance, you're not stuck with a one-size-fits-all policy. Riders are optional add-ons that let you customize your coverage to match your actual life—whether that's protecting your family if you get sick, making sure your premiums get paid if you're injured, or covering your kids with one simple addition. Think of them like adding features to a car: the base model gets you from point A to point B, but the right upgrades can make the journey a whole lot better.
But here's the catch: not all riders are worth the extra cost, and you usually can't add them after you've bought your policy. That's why understanding your options now matters. This guide walks you through the most common life insurance riders, what they actually cost, and which ones are worth considering for your situation.
What Are Life Insurance Riders?
A life insurance rider is an optional benefit you can add to your policy that gives you coverage or features you wouldn't get otherwise. Some riders are free, automatically included by many insurers. Others cost extra and can increase your monthly premium anywhere from a few dollars to 60% more, depending on what you're adding.
The important thing to know: most riders can only be added when you first purchase your policy. You can't typically call up your insurer five years later and tack them on. That's why it's worth understanding your options before you sign on the dotted line.
Common Life Insurance Riders (and What They Actually Do)
Accelerated Death Benefit Rider
This is the most common rider, and it's usually free. If you're diagnosed with a terminal illness, you can access up to 75% of your death benefit while you're still alive. That money can cover medical bills, experimental treatments, or just give you financial breathing room during an impossibly difficult time. Many insurers include this automatically, though some may charge a small fee when you actually use the benefit. Experts recommend making sure any policy you buy includes this rider.
Waiver of Premium Rider
Here's the scenario this rider protects against: you become disabled and can't work, money gets tight, and suddenly you're faced with dropping your life insurance to save on bills. The waiver of premium rider steps in and pays your premiums for you if you become totally disabled, keeping your coverage intact until you can work again. It typically costs at least 10% of your total premium, which isn't cheap. But if you're under 45 and don't have disability insurance through work, this rider can be a smart safety net.
Child Rider
A child rider covers all your children (even future ones) under one flat fee—typically around $5 per month for $10,000 of coverage per child. The coverage is usually modest, but here's the real value: when your kids grow up, they can convert this rider into their own permanent life insurance policy without a medical exam. That means even if they develop health issues later, they're guaranteed to qualify for coverage. For parents, it's an inexpensive way to secure your children's future insurability.
Guaranteed Insurability Rider
Life changes, and so do your insurance needs. This rider lets you increase your coverage at specific life events—getting married, having a baby, buying a house—without taking another medical exam. This is especially valuable for young people who expect their income to grow or who might develop health conditions that would make it harder to qualify for more coverage later. The cost varies by insurer, but for people in their 20s and 30s, it's often worth considering.
Long-Term Care Rider
This rider lets you tap into your death benefit to pay for long-term care services like nursing home stays, assisted living, or in-home care if you need help with daily activities. It's particularly useful for people in their 30s through 50s who want protection against extended care costs without buying a separate long-term care insurance policy. The catch? It's expensive, typically adding 20% to 60% to your premium. If a policy costs $85 per month, adding this rider at a 40% increase would bump it to $119 per month.
Return of Premium Rider
If you outlive your term life insurance policy, this rider refunds all or some of the premiums you paid. Sounds great, right? The problem is it significantly increases your monthly cost—sometimes doubling your premium. Most financial experts suggest you'd be better off buying a cheaper policy without this rider and investing the difference yourself.
What Do Riders Actually Cost?
Rider costs vary widely based on your age, health, coverage amount, and location. Here's what you can generally expect as of 2024-2025:
Free or minimal cost: Accelerated death benefit riders are often included at no charge, though some insurers may charge a processing fee when you access the benefit.
Budget-friendly: Child riders typically cost around $5 per month for $10,000 of coverage and cover all your children. Basic riders generally start around $4 per month and range from $15 to $40 monthly.
Moderate increase: Waiver of premium riders add at least 10% to your total premium. A guaranteed insurability rider's cost varies but is typically manageable for younger buyers.
Significant expense: Long-term care riders can increase premiums by 20% to 60%. More intensive features like return of premium can reach $70 per month or more and may double your base premium.
The key is to calculate the actual dollar impact. A 10% increase sounds small, but if you're paying $100 per month, that's an extra $1,200 over the life of a 10-year term. Make sure the benefit justifies the cost for your specific situation.
Which Riders Are Worth It (and Which to Skip)?
Not all riders make sense for everyone. Here's how experts break it down:
Almost Always Worth It
Accelerated death benefit: This one's a no-brainer since it's usually free and provides valuable flexibility if you face a terminal diagnosis. Experts universally recommend it.
Waiver of premium: If you're under 45 and don't have individual or group disability insurance through work, this rider can save your coverage during a disability. Skip it if you already have solid disability coverage elsewhere.
Worth It for Specific Situations
Child rider: Great for parents who want to guarantee their children's future insurability at a low cost.
Guaranteed insurability: Smart for young people who expect their income and insurance needs to grow, especially if there's a family history of health issues.
Long-term care rider: Best for homeowners in their 30s-50s who want protection against extended care costs but don't want to buy standalone long-term care insurance. Just be prepared for the premium increase.
Usually Not Worth It
Accidental death and dismemberment (AD&D): Experts almost universally recommend skipping this one. It only pays out if you die in an accident, and the reality is most people don't die that way. Your standard death benefit already covers your family regardless of how you die, so paying extra for accident-only coverage doesn't make financial sense for most people. The benefit automatically ends at age 70 anyway.
Return of premium: While getting your money back sounds appealing, the significantly higher premiums mean you'd likely come out ahead by buying a cheaper policy and investing the savings yourself.
How to Decide Which Riders You Need
Start by looking at what coverage you already have. If your employer provides disability insurance, you may not need waiver of premium. If you're young and healthy with a family history of illness, guaranteed insurability makes more sense than it would for someone in their 50s.
Next, calculate the real cost. Ask your insurance agent for quotes with and without each rider you're considering. Look at the monthly difference and multiply it by the length of your term. A $10 monthly increase over 20 years is $2,400—is the benefit worth that to you?
Finally, remember that you can't add most riders later. If you're on the fence about whether you'll need something in the future—like guaranteed insurability if you're planning to have kids—it's often better to include it now. You can't go back in time, but you can always reassess your coverage as your life changes.
The right riders transform a basic life insurance policy into coverage that actually fits your life. Whether that means protecting your income if you become disabled, securing your children's insurability, or accessing benefits during a serious illness, the key is choosing riders based on your real needs and budget—not just what sounds good in theory. Take the time to compare costs, ask questions, and build a policy that gives you real peace of mind.
