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




Social Insurance Benefits Rider
Purchase Option Rider
Cost of Living Rider
Return of Premium Rider
Hospital Income Rider
Chapter 3 Review