A Disability Income Rider gives you financial stability in case you suffer a disability as a result of an accident. A Disability Income Rider pays an insured person a monthly income that is equal to 1% of the face value of the insurance policy. Your insurance company may also waive the insurance premiums that you need to pay, if you are eligible for the Disability Income Rider.
Understanding a Rider
Simply put, a rider can be understood as an additional feature or benefit given with a Life Insurance contract. Usually, riders are benefits that you get in addition to the standard death benefit that are included in your policy.
A Steady Monthly Income
If the insurance company offers you 1% of the value of the insurance policy, this can be a good source of monthly income for you. Do you have a policy with a high value? Your Disability Income will be a sizeable amount. Disability Income can be availed until a certain age or for the lifetime of the insured person. The period of the income depends on the terms of your insurance policy.
Waiver of Premium
A Disability Income Rider cancels any future premium charges on your insurance policy. This is similar to a waiver of premium rider.
Are You Eligible for a Disability Income Rider?
- To claim a disability income, you should have a permanent disability.
- The insured person should be disabled for a minimum period of 6 months before getting any disability income or having the insurance premiums waived.
- A medical doctor will be required to certify the disability and when it occurred.
How do you decide if you need a Disability Income Rider?
You must evaluate these factors:
– Your total present disability coverage.
– The amount you may need if you were disabled
– The cost of getting the required coverage.
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