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what is the deference in face value and rider value in life insurance?

What is face value ? What is rider amount?
I got a life insurance with 250K coverage. (Face Value) Somebody told me that if I have 150K for face value and 100 for rider my premium will be lower. Is this correct . Please help me it is confusing for me.

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One Response to “what is the deference in face value and rider value in life insurance?”

  1. mbrcatz said :

    Face value, is how much gets paid out if you die.

    A rider, is a change to the policy. For example, if you have a $150,000 death benefit, maybe you have a rider for $100K for “accidental death”. That means, if you die BY AN ACCIDENT, like a piano falling on you, on the street, the policy pays out $250,000. If you die from anything else, like an infection in the hospital, after the piano falls on you, the policy only pays out $150,000. In that situation, it WOULD cost less than a $250K face value, because MOST of the time, it’s going to pay out less.

    Whoever that somebody is, did a lousy job explaining what a rider is, and WHY it would cost less . . . if they are the person trying to sell you insurance, go find someone else. If not, don’t listen to them. Giving advice, without explaining the DOWNSIDE, will leave YOU screwed in the end.




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