What Is a Spouse Rider on Life Insurance?

Life insurance policies can be customized with various optional additions known as riders. These riders allow policyholders to enhance their coverage beyond the basic death benefit. A spouse rider extends life insurance protection to the policyholder’s spouse, making it possible to include coverage for two individuals under one main policy.

Understanding the Spouse Rider

A spouse rider is an endorsement added to a primary life insurance policy, providing a designated amount of coverage for the policyholder’s spouse. It offers financial protection for a spouse, often without the need for a separate, standalone policy. This type of rider typically functions as a form of term life insurance, meaning it provides coverage for a specific period. It is generally structured to deliver a death benefit if the covered spouse passes away while the rider is active.

This approach allows for a streamlined way to manage life insurance for both partners within a single policy framework. Utilizing a spouse rider can be a more affordable option compared to securing two individual life insurance policies. The primary policyholder typically serves as the beneficiary of the spouse rider’s death benefit.

Spouse Rider Coverage Details

The coverage provided by a spouse rider is usually a fraction of the primary policy’s death benefit. This coverage is generally term-based, meaning it remains active for a specific duration or until the spouse reaches a certain age, such as 65 or 70. The rider’s coverage also often terminates if the primary policy lapses or ends for other reasons. Should the primary insured individual pass away, the spouse’s coverage under the rider may cease.

However, many spouse riders include a conversion option, allowing the surviving spouse to convert their rider coverage into a new, standalone life insurance policy. This conversion often occurs without requiring further medical examination, which can be beneficial if the spouse’s health has changed.

Adding a Spouse Rider to Your Policy

Adding a spouse rider to an existing or new life insurance policy involves meeting certain eligibility requirements. Spouses are generally eligible for coverage within specific age ranges, often from 18 up to 65 years old. The individual must be a lawful spouse or, in some cases, a domestic partner or civil union partner if recognized by state law and the insurer.

While the underwriting process for a spouse rider may be simplified compared to a standalone policy, a health assessment is typically required for the spouse. This assessment helps determine eligibility and the appropriate premium. A spouse rider can often be added when the primary policy is initially purchased or, depending on the insurer, as an add-on to an existing policy.

The cost of a spouse rider is usually integrated into the primary policy’s premium, increasing the overall payment. Although it adds to the premium, the combined cost of a primary policy with a spouse rider is frequently less than purchasing two entirely separate life insurance policies. The exact premium amount depends on factors such as the spouse’s age, health, and the amount of coverage desired.