If you’ve started exploring Variable Universal Life (VUL) insurance, you’ve probably come across the term “riders.” At first, it might sound like insurance jargon meant to confuse you. But in reality, riders are where your policy becomes truly personal—and potentially powerful.
What Are Riders in VUL Insurance?
Riders are optional features or benefits that you can add to your base VUL insurance plan. They act like custom upgrades, allowing your policy to cover more than just death benefits or investment growth.
Think of your VUL policy as a base smartphone. It works well on its own, but with the right apps (in this case, riders), it becomes tailored to your lifestyle and needs.
Why Do Riders Matter?
Life is unpredictable. While your base VUL policy might offer protection and wealth accumulation, it may not address all the risks you face—like a sudden critical illness, an accident, or being unable to pay premiums due to disability. This is where riders step in.
Personally, I chose a critical illness rider. Two years later, when my father suffered a stroke and I saw the emotional and financial toll it took, I realized just how crucial that decision was. I couldn’t stop bad things from happening—but I could prepare for them.
Top VUL Insurance Riders to Consider
Here are some of the most common and impactful VUL insurance riders, along with why they might be worth adding to your policy:
1. Critical Illness Rider
This provides a lump-sum payout if you’re diagnosed with a major illness such as cancer, heart attack, or stroke. The funds can be used for medical bills, therapy, or simply to keep your household running during recovery.
2. Accidental Death Benefit Rider
If death occurs due to an accident, this rider pays an additional amount on top of your death benefit. It’s especially valuable if you work in high-risk environments or frequently commute.
3. Waiver of Premium Rider
If you become permanently disabled or critically ill, this rider waives your future premium payments while keeping your policy active. It’s a great safety net when income stops but your insurance shouldn’t.
4. Hospital Income Rider
This gives you a daily cash benefit when you’re confined in a hospital. It’s a helpful buffer for out-of-pocket medical expenses, especially if your health plan has limits or exclusions.
5. Payor’s Benefit Rider (for Children’s Policies)
Ideal if you’re getting a VUL for your child. If something happens to you (the payor), the insurer will continue paying the premiums on your behalf, ensuring the policy remains in force for your child’s future.
How Much Do Riders Cost?
The cost of each rider depends on the benefit amount, your age, and overall health. Generally, riders add a small percentage to your total premium. For example, adding a ₱500,000 critical illness rider might cost just ₱300–₱500 per month.
It may seem like a lot when you’re budgeting, but the financial cushion these riders offer in tough times is often far greater than the extra cost.
Who Should Get Riders?
That depends on your life situation. Here are a few scenarios:
- Young professionals may want critical illness and accidental death riders while they’re building their financial base.
- Parents can add a payor’s benefit to secure a child’s future.
- Freelancers and small business owners may benefit from waiver of premium riders due to income instability during illness or disability.
- Anyone without an HMO or comprehensive health coverage can add a hospital income rider for additional peace of mind.
The beauty of VUL is that it’s customizable. Riders allow you to mold your plan to fit your lifestyle, not the other way around.
When Should You Add Riders?
Ideally, riders should be added at the time of policy issuance. That’s when you’re likely healthier and eligible for the best rates. Adding riders later may require new medical underwriting, or in some cases, may not be allowed at all.
Can You Remove or Change Riders?
Yes. If your life situation changes—say, your income increases or you get separate health insurance—you may want to remove or reduce certain riders. Just make sure to consult your advisor before making changes, as removing a rider may mean giving up a benefit you can’t get back later.
Riders vs. Standalone Policies
One common question is: why not just get a separate policy instead of adding a rider?
Riders are often more cost-effective and convenient. They work within your existing VUL structure, meaning one policy, one premium, and one point of contact. However, standalone policies might offer higher limits and flexibility in some cases. It all depends on your goals and budget.
Final Thoughts: Riders Are Personal, Just Like Your Life
Choosing the right VUL insurance isn’t just about the investment component or the death benefit—it’s also about the add-ons that make your plan uniquely yours. Riders give you the power to protect against what really matters in your life, whether it’s illness, accidents, or financial setbacks.
When people say “insurance is love,” they’re not wrong. But riders? Riders are the details of that love—specific, intentional, and thoughtful. They’re not for everyone, but they might just be for you.
Before you sign that policy, ask yourself: “Is this enough?” If the answer is no, the right rider might be what turns a good plan into a great one.