LIFE INSURANCE RIDER
Return of Premium Rider
A return of premium rider is a good option if
- You choose a Fidelity Life standalone accidental death benefit policy and want an additional benefit in case you reach your policy’s expiration date.
- You choose a Fidelity Life standalone accidental death benefit policy and may want to discontinue your policy before it expires.
What is a return of premium rider and how does it work?
A return of premium rider is a supplemental insurance product that can offer a financial safety net to your standalone accidental death benefit policy (ADB).
You may outlive your original standalone accidental death benefit policy. You could choose to switch insurance policy types before your accidental death benefit term is up or discontinue your current policy before the end of its term. In these situations, once you pay the premiums for your standalone ADB policy, they usually cannot be recouped.
A return of premium rider from Fidelity Life can change that. With this rider, after the fifth year of the policy being in force, your policy begins to build cash value.
If your standalone accidental death benefit expires or you discontinue your policy, you will be refunded a set percentage of your total premiums paid.
Pros & cons of return premium life insurance
Pros:
- You get a guaranteed return on your ADB policy that’s typically tax-free.
- You can build up cash value in your plan that you can access during your lifetime.
- Premiums are often lower than permanent life insurance.
Cons:
- You’ll pay more for a plan with this rider than you would for a basic ADB policy.
- If you stop paying your premiums or cancel your policy before the term ends, you won’t receive the refunded premiums.
- Your premiums can depreciate over time because of inflation, so putting your dollars into another investment vehicle can potentially give you a bigger return.
Is return premium life insurance worth it?
A return of premium life insurance rider may be worth it if you plan to keep your policy active for an extended period (longer than five years). If there’s a chance you may cancel your policy in the first few years before it can accrue cash value, return premium life insurance may not be the best choice. If you’re considering purchasing an ADB policy with a return of premium life insurance rider, it’s critical to fully understand the cost, premium payments, and cancellation policy upfront. That way, you’ll feel confident that the return of premium rider works for your unique financial needs and budget.
What other life insurance riders are available?
Life insurance riders can help you customize your coverage to increase your payout, access your benefits early, or provide extra protection for your family. Learn about life insurance rider options from Fidelity Life.
Accidental death benefit rider
This rider pays out if the policyholder’s death was caused by a covered accident, or by injuries from an accident within 90 days of the event.
Family accidental death benefit rider
Add this rider to your ADB policy to provide extra coverage if your partner or dependent child has an accident.
Accelerated death benefit rider
If you have a terminal illness, this supplemental insurance product allows you to take out a percentage of your death benefit early.
Child insurance policy rider
This rider can help cover funeral expenses or time off work if your child passes away.
Inflation rider
For people with a standalone Fidelity Life accidental death benefit policy, this rider can help your policy keep pace with inflation.
If you have questions about which riders to add to your policy, talk to one of our life insurance agents.
Quick Answers to Common Questions
What is an insurance rider?
A rider is supplemental to your insurance policy. It amends the policy to include optional terms or conditions. Riders may increase premiums, but they can offer additional benefits and expanded coverage.
How does a return of premium rider work with Fidelity Life?
A return of premium rider can be added to a standalone Fidelity Life accidental death benefit (ADB). With a return of premium rider, your total ADB policy premium will increase. However, after the fifth year of the policy being in force, your policy will slowly begin to build cash value. If you discontinue your policy, you are refunded a certain percentage of total premiums paid. Each passing year will raise the percentage of your total paid premiums that can be recouped if you decide to discontinue premium payments. By the time the policy reaches a certain duration, a full 100% of premiums paid in may be refunded to you.
If you die from natural causes, your return of premium benefit will be paid out to your beneficiary. If you die from a covered accident, the accidental death benefit on your standalone Fidelity Life ADB policy will be paid to your beneficiary. If you lapse your policy at any point where your return of premium rider has value, you can take the refund premiums and do with them what you’d like, such as remodeling your home or taking a vacation.
Why might I add a return of premium rider to my standalone accidental death benefit?
Which Fidelity Life policy can I add a return of premium rider to?
A return of premium rider can be added to a standalone Fidelity Life accidental death benefit policy.
Why should I choose Fidelity Life?
Fidelity Life is committed to helping you find the right life insurance. For more than 100 years, we’ve been helping everyday people like you get the life insurance you need and the peace of mind you deserve. Our mission is to work with you throughout your life. Whether just starting out, raising your children, or getting ready to enjoy retirement, we design products with families like yours in mind.
You can feel confident we’ll be there for your loved ones because we carry an A+ rating from the Better Business Bureau as well as an A- rating (Excellent) from A.M. Best Company, the oldest and most widely recognized provider of ratings for the insurance industry. Our commitment to our customers, and their families, shows up in our innovative products and our top-notch customer service.
How can I get started?
If you want to speak to an agent about attaching a child insurance policy rider to your existing Fidelity Life policy, please call our Customer Service Representatives Monday through Friday at 800.369.3990 from 8 a.m. to 5 p.m. Central Time CT.
If you want to calculate your life insurance coverage needs, you can use our calculator. Then, we’ve made it simple to get your application started online.
