Competing Riders

Experts say we should steer clear of any coverage that vies for supremacy, and there’s a good reason for that. They’re just a waste of money and resources and actually feel more like a complete scam.

Some income riders can provide guaranteed income streams you can turn on later, such as for retirement, while others let you collect a lump sum if you develop a serious medical condition or if you’re seriously injured. Sounds good, right? Well, there have been cases where accelerated benefits were voided when the injured person activated the income stream but continued paying for the competing rider!

Steer clear!

Group Term Life Insurance

Getting a group term life insurance makes absolutely no sense for young, healthy people since the prices are based on the age of the group, the assumption that one-third of said group is not healthy, and that some may be smokers. Given this, individual health insurance is far more economical.

The only time a group term life insurance might be worth it is if it is covered and supplemented by an employer. Otherwise, look the other way!

Mortgage Life Insurance

Given that standard life insurance policies are cheaper, are more flexible, offer a steady death benefit, and allow additional benefits such as waiving the premium if you become disabled, there’s no real reason for you to get a mortgage life insurance.

A mortgage life insurance will repay an outstanding mortgage if the placeholder passes away. It’s also known as a declining or decreasing mortgage life insurance because the amount of coverage decreases even though the premium stays the same as long as you’re paying off your mortgage.

While this might sound cost-effective, you might be better off just sticking with a standard life insurance instead.