Disability Insurance Policy Riders
Below is a list of the most common disability insurance policy riders we include in our personalized quotes. Simply put, a policy rider is an optional feature, typically available for an additional cost, that can enhance your policy to provide for additional risks generally associated with disability. Our firm can help you to better understand these options and determine which are most appropriate for your situation. To get started, call 1-800-817-4522 or submit a quote request.
Residual Disability Benefit
The residual disability benefit enhances your policy so that benefits may also be claimed for partial disability. Without this benefit, you must be totally disabled in order to receive benefits. Some companies will include this as a base feature and others offer it as an optional rider – we encourage all consumers to include residual benefits in their policy. For a detailed description, we devoted a whole web-page to the residual disability benefit.
Cost of Living Adjustment (COLA)
The COLA rider is intended to help maintain the purchasing power of your monthly disability benefit during a long term disability claim. To help reduce the risk of inflation, this optional rider enhances your policy so that benefits are increased each year that you remain continuously disabled. A detailed description is available on the Cost of Living Adjustment rider.
Future Increase Option (FIO)
The FIO rider allows you to increase your monthly disability benefit each policy anniversary without requiring additional medical screening. You must still qualify financially but your health will not impact your application. This is particularly beneficial for individuals expecting a significant salary increase in the near future. More information is available on the Future Increase Option rider
Automatic Benefit Enhancement (ABE)
The ABE rider is available with most carriers at no additional cost and increases your monthly benefit by a designated percentage each of the first 5-6 policy anniversaries. Your premium will also increase each year as a result of the increased benefit. Annual benefit enhancements occur automatically but you can easily opt-out in any year.
“Own Occupation” Total Disability
The Own-Occupation rider enhances your policy to provide total disability benefits when “an injury or illness prevents you from performing the material and substantial duties of your occupation, even if you are able and select to work in a different occupation”. Some insurance companies include this in their basic policy and others will offer it as an optional rider.
This rider allows you to purchase an additional benefit amount that will be paid if you are catastrophically disabled which means you have a complete and irrecoverable loss of sight in both eyes, hearing in both ears, speech; or the use of both feet, both hands, or one foot and one hand. Traditionally you will also be considered catastrophically disabled if you are totally disabled and have Alzheimer’s Disease or other irrecoverable forms of dementia or senility; Paraplegia or Quadriplegia, etc.
Additional policy riders incur additional cost.
FIO, Conditions and limitations apply. Medical information is not required when applying to exercise an increase option. Taken into consideration are financial information as well as all disability insurance in force, for which you’ve applied or are eligible to receive. Benefit Purchase Rider, Conditions and limitations apply. Medical information is not required when exercising an option for additional coverage. Taken into consideration are your income, occupation and employment, as well as all disability insurance in force, for which you’ve applied or are eligible to receive. Coverage may not be added while you’re disabled, when benefits are payable, or during a suspension period.
COLA, This benefit is not necessarily protection against increases in the cost of living.