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by Indiana Farm Bureau Insurance

All about the Paid-Up Additions Rider in life insurance

All about the Paid-Up Additions Rider in life insurance photo with father holding his daughter on his back while she is kissing him on the cheek


Indiana Farm Bureau Insurance now offers a Paid-Up Additions Rider on its Whole Life Insurance Policy. This added coverage can enhance your Whole Life insurance policy and offers a significant number of advantages to the policyholder.  

 

What is a Paid-Up Additions Rider?  

 

The rider allows an insured to enhance a whole life policy to address what is most important or valuable to them, which may include: 

 

  • Guaranteed cash value growth with no downside risk 

  • Enhanced death benefit growth 

  • Flexible premium options 

  • Accelerated death benefit to help offset expenses in the event the insured becomes chronically or terminal ill 

Once the insured identifies what is most important, the Paid-Up Additions Rider can be designed to enhance the whole life policy to address the individual's specific situation. 

 

 

How does a Paid-Up Additions Rider work?  

 

The rider provides the insured the opportunity to determine when and how they want or need to utilize their life insurance policy. 

 

How much does it cost to add a Paid-Up Additions Rider?  

 

The Paid-Up Additions Rider provides premium flexibility! You determine what your long-term goals are, then with our flexible premium structure you determine how much premium you want to pay towards meeting your goals. 

 

What are the benefits of a Paid-Up Additions Rider?  

 

There are multiple benefits to a Paid-Up Additions Rider on your Indiana Farm Bureau Insurance Whole Life Insurance Policy. These benefits can range from:  

 

Living benefits 

 

Some of the living benefits of a Paid-Up Additions Rider include:
 

  • Retirement fund assistance 

  • Options to access the policy’s cash value 

  • If you are diagnosed with a terminal illness, access to accelerated death benefits   

 

Chronic illness protection  

 

If you are diagnosed with a chronic illness that is approved under our policy’s guidelines, this rider can provide you with income tax-free money to assist you with expenses. What is unique about this rider is that you can use that money towards anything, not just medical bills. If you want to spend that money on a weekend getaway to the beach for relaxation with your loved ones, you can.  

 

Flexible premium  

 

How much you pay on your premium is your choice. Premium amounts from $100 to three times the annual base premium that would be paid annually. We have many options—single  premium option or a combination of single and annual premium payments. Keep in mind you can also alter your premium each year or even each month!  

 

Guaranteed no lapse  

 

One of the huge upsides of a Paid-Up Additions Rider is that market conditions and interest rates don’t affect your premium’s cash value. If fact, we guarantee that if you pay your premium your life insurance policy cannot run out of cash value regardless of the market’s conditions and/or interest rates that downturn.  

 

Death benefit – Income tax free 

 

If the unexpected were to happen to you, your beneficiaries would receive income tax-free dollars either in a lump sum, monthly or both. When you or someone you love passes away, the days and weeks following are never easy. We offer beneficiary assistance for those who are mourning a loss but also must deal with other tasks when someone passes away.  

 

 

For more information on the benefits of a Paid-Up Additions Rider at Indiana Farm Bureau Insurance, talk to one of our local agents today. They can help you understand more about the benefits you have and begin the conversation of adding a Paid-Up Additions Rider to your Whole Life Policy.