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Chapter 3
Principal Disability Rider Benefits
The important points addressed in this lesson are:
Riders available for use on disability income policies can add substantially to insured benefits
Social Insurance Benefit riders enable a policyowner to increase the level of disability coverage without exposing the insurer to the problems of overinsurance
Social Insurance Benefit riders permit the policyowner to have greater levels of disability coverage at generally lower cost
A Purchase Option Rider protects an insured's insurability by making additional disability income coverage available in the future despite any deterioration of the insured's health
Cost of Living riders combat the problem of reduced purchasing power caused by inflation by increasing the monthly disability benefit based on a guaranteed minimum increase, the change in the CPI or both
Return of Premium riders substantially increase the policy premium but provide a return of premium, less the aggregate claims paid, on specified dates, at death or upon surrender
A Hospital Income Rider may be designed to provide a non-disability benefit for each day the insured is in the hospital or may be designed to waive the elimination period in the event of hospitalization so that disability benefits begin immediately
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