How do insurance riders fit into insurance law?

Sometimes initial insurance coverage is not enough to meet the needs of policyholders as their lives change. Instead of canceling and purchasing new policies, people can instead purchase insurance riders to supplement their coverage. But insurance law can be complicated, and the purpose and benefits of different riders might not be totally clear to some people in Washington. Here are a few important things to remember when considering purchasing an insurance rider.

Health insurance usually does not cover things like daily services for the elderly or those suffering from long-term illnesses. People in these situations might require help dressing or even bathing, but many cannot afford the help they need. A long-term care rider covers those costs and can be added to certain existing insurance policies, notably life insurance. This rider is especially popular among those who are over the age of 60.

Another example is an inflation rider, much like what is used for homeowners’ title insurance policies. In most situations, a person’s title insurance coverage is not based on a home’s current value, but its value when he or she purchased the policy. An inflation rider adjusts that coverage as inflation increases the value of the home. This type of rider can also be helpful for other types of insurance to cover increases in the costs of certain care, including long-term care insurance.

Navigating the complex language of an insurance policy can be confusing and even overwhelming. Many people come away from the process still unsure of what is actually covered. This makes evaluating one’s needs difficult, and he or she might easily miss an opportunity to purchase a rider. Rather than leave things up to chance, it could be helpful to speak with an experienced insurance law attorney in Washington about specific coverage needs, policies and riders.