Life Insurance Policy Riders

Find out more about life insurance policy riders and how they can be added to your cover with Savvy.

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, updated on July 10th, 2023       

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Life Insurance Banner - Young couple looking at life insurance policy riders on a tablet

Life insurance policy riders are additional provisions which can be added to a standard life insurance policy to provide extra benefits and flexibility to the policyholder. As such, understanding the different types of riders available can help you make a more informed decision when selecting a life insurance policy which is the best fit for your unique needs. Find out what some of the most common policy riders are in life insurance right here in Savvy's helpful guide.

What are life insurance policy riders and how do they work?

In Australia, the meaning of a life insurance policy rider is a condition which can be added to a standard policy to enhance its coverage for an added cost (in most cases). They’re also known as optional benefits or extras. They provide an opportunity for policyholders to tailor their coverage more to meet their needs. Riders can be added to many types of policies, including life cover policies.

The cost of adding riders to a policy will depend on the type and amount of coverage you choose. Adding riders to a policy can increase premiums, but it may also provide additional peace of mind knowing that you are covered for more than you would’ve been with a basic policy. It's important to take the time to learn about the different optional benefits available to help determine which are appropriate for your specific needs.

What are some common examples of life insurance policy riders in Australia?

There are several different types of life insurance policy rider which may be available in Australia. Some of these include:

  • Accidental death benefit: this can provide an additional payout to your beneficiaries if you pass away due to an accident. This is also known as a “double indemnity” clause, which means your beneficiaries would receive double the amount of your life insurance policy if you die in an accident. This can be a valuable addition to your policy, especially if you have a high-risk occupation or engage in risky activities.
  • Child life insurance cover: this rider can provide life insurance coverage for your children. It can provide a lump-sum benefit to help your family cover expenses associated with your child's death or a serious illness.
  • Bloodborne disease cover: also known as needlestick injury cover, this rider can provide you with a lump sum benefit if you contract a bloodborne disease, such as HIV, Hepatitis B or C. Your payout can be used to help pay for medical expenses associated with your illness or to help support your family if you’re unable to work due to your condition. This rider is most often found in policies for medical professionals, such as doctors, dentists or nurses.
  • Waiting period waiver: this rider waives the waiting period for your life insurance coverage. Some life insurance policies come with a waiting period before your life insurance coverage takes effect. However, with this waiver, you may be able to receive coverage immediately.
  • Mortgage protection insurance: some insurers also offer additional cover such as mortgage protection insurance to help you or your family pay off your mortgage in the event of your illness, injury or death. This type of cover can help ensure that your family is able to continue living in your home without worrying about the financial burden of paying off your mortgage.

Other life insurance companies may offer further riders, such as cover for extra rehabilitation after your illness or injury, home bed care or insurance to help cover the cost of looking after dependents such as an aging parent. As such, it’s crucial to compare your options before you buy your policy so you can learn more about the riders available and which may be suitable for your needs. You can learn more about the optional benefits available from a panel of trusted insurance providers through Savvy today by getting a quick online quote.

Frequently asked questions about life insurance policy riders

How else should I compare life insurance policies beyond their riders?

When comparing life insurance policies, it's important to look beyond the policy riders and consider other factors such as:

  • Premiums: compare the cost of different policies to see which is the most affordable while offering suitable cover.
  • Coverage limits: check how much coverage is offered by each policy to ensure it meets your needs.
  • Policy inclusions and exclusions: read the policy's inclusions and exclusions so you can be sure about what is and isn’t covered.
  • Policy benefits: compare other benefits which may apply, such as advance payments and cover suspension.
  • Waiting periods: check whether any waiting periods apply to your coverage to help you find one which is most suited to your needs.
Can I add a rider to my existing life insurance policy?

You can typically add a rider to your existing life insurance policy at any time, subject to your insurer's terms and conditions. You may need to provide additional information or undergo a medical exam, depending on the type of rider you’re adding, and your premiums may increase as a result of the added coverage.

Can I remove a rider from my life insurance policy at any time?

Generally, you can remove a rider from your life insurance policy at any time by contacting your insurer. However, this may affect your policy's coverage, premiums or eligibility, so it's important to consider whether it’s worth removing it before doing so.

Can policy riders be added to group life insurance policies?

Riders may be able to be added to group life insurance policies, such as for employees under their employer’s policy, but the availability and terms may vary depending on the insurer and the policyholder's eligibility. You should check with your employer or the policy administrator for more information.

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Compare life insurance policies side-by-side

Through Savvy, you can consider a range of competitive life insurance policies from reputable insurers, whether you're after life, income protection, trauma or TPD cover. Get the ball rolling on comparing your available options today!
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Disclaimer:

Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.

Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.