Final answer:
Life insurance policies can include various riders that affect the death benefit amount, such as Accidental Death Benefit, Term Conversion, Waiver of Premium, Guaranteed Insurability, Child Term, and Accelerated Death Benefit riders. These riders can add or advance payment, or preserve the benefit in specific circumstances.
Step-by-step explanation:
The death benefit amount from a life insurance policy can be affected by several riders, which are additional features that can be purchased to customize the policy to the needs of the insured. The six riders that could potentially affect the death benefit amount are:
- Accidental Death Benefit Rider: If the insured dies due to an accident, this rider provides an additional amount on top of the base death benefit.
- Term Conversion Rider: Allows the policyholder to convert a term life insurance policy into a permanent one without having to show evidence of insurability, potentially affecting the death benefit.
- Waiver of Premium Rider: Waives the premiums if the policyholder becomes disabled and unable to work, keeping the policy in force and preserving the death benefit.
- Guaranteed Insurability Rider: Permits the policyholder to buy additional insurance coverage at certain intervals without further proof of insurability, which could increase the death benefit amount.
- Child Term Rider: Provides a small death benefit if a child of the policyholder passes away.
- Accelerated Death Benefit Rider: Allows the policyholder to receive a portion of the death benefit while still alive, if diagnosed with a terminal illness, which would reduce the remaining death benefit payable after death.
Understanding these riders and how they can modify the policy is essential when considering the right life insurance coverage to meet one's needs.