Policy Provisions & Riders

Every life insurance policy contains standard provisions:

Grace period — typically 30–31 days after a missed premium. Policy remains fully in force. If insured dies during grace period, death benefit is paid minus the overdue premium.

Reinstatement — a lapsed policy can usually be reinstated within 2–3 years by providing evidence of insurability and paying all overdue premiums with interest.

Free look period — typically 10 days after policy delivery. The policyholder can return the policy for a full refund if unsatisfied.

Incontestability — after 2 years, the insurer cannot contest the policy's validity based on misrepresentation (except fraud).

Suicide clause — if the insured dies by suicide within 2 years of policy issue, the insurer returns premiums paid rather than the full death benefit. After 2 years, full benefit is payable.

Riders are optional add-ons that customize a life insurance policy:

Waiver of Premium (WOP) — if the insured becomes totally disabled (after a waiting period, typically 90 days), premiums are waived and the policy stays in force.

Accidental Death Benefit (ADB) — pays an additional amount (often equal to the face amount — "double indemnity") if death results from an accident.

Guaranteed Insurability (GI) — allows the insured to purchase additional coverage at specified future dates (or life events like marriage, birth of a child) without new medical evidence.

Child Term Rider — provides term coverage for all children of the insured under one flat premium; typically convertible when the child reaches adulthood.

Cost of Living Adjustment (COLA) — automatically increases the death benefit annually (usually tied to CPI) to maintain purchasing power.