What is an "illness rider" in life insurance?

An "illness rider" in life insurance is designed specifically to provide additional benefits in the event that the policyholder is diagnosed with a specified critical illness. This rider allows for an early payout of a portion of the death benefit if the insured is diagnosed with conditions such as heart attack, stroke, or cancer, among others. The purpose of this feature is to provide financial support at a time when medical expenses may be high, or the insured may be unable to work, effectively offering a safety net that helps manage the financial burden associated with serious health issues.

This option highlights the proactive nature of the rider, which addresses the potential financial needs that arise not only from terminal illnesses but from serious health conditions that can lead to significant expenses. It aligns with the broader purpose of life insurance, which is to offer financial protection and peace of mind to the insured and their beneficiaries.