Own
Occupation
Liberalizes
the definition of total disability so that benefits will not be reduced
due to a disability you are unable to work in your occupation and return
to work in another occupation.
Residual
When
you return to work after a total disability, you may still have an
income loss because of your sickness or injury. Or you may never
be totally disabled, but still have an income loss because of a sickness
or injury. In situations like these, it is important to have a
Residual Disability rider.
Residual
Indemnity is a proportionate amount of the monthly indemnity for the
policy. It is determined by dividing your loss of income by your
prior income and multiplying by the monthly indemnity. Either
total or residual disability may be used to satisfy the elimination
period for disability.
The
Residual Disability benefit is paid to you when you are at work and are
not totally disabled under the terms of the policy, but because of
sickness or injury your loss of income is at least 20% of your prior
income.
Even
if you have recovered from the sickness or injury that caused residual
disability, you may also be considered residually disabled so long as
your prior loss of income and the loss is a result of such sickness or
injury.
If
your loss of income is more than 75% of prior income, your loss may be
deemed at 100%.
Future
Insurance Option ( FIO, FPO, GIO)
This rider
provides the option for you to purchase additional disability income
benefits in the future, thereby helping your coverage to keep pace with
your rising income, regardless of any change in your health or
occupation. Specific income and underwriting rules apply, but no
evidence of good health is required. This rider can be exercised all at once or at
specific intervals, depending on the insurance carrier issuing the
policy.
Depending
on the insurance company, this rider may be exercised while
disabled. This is an important feature and you will pay more for
it. Remember, the purpose of this rider is to allow you to increase your
monthly benefit to keep pace with your income without medical underwriting.
Cost of
Living Adjustment
This
rider increases your monthly benefit, while on claim, by a certain
percentage. This percentage could be at simple or compounded rates
and depends on the insurance company issuing the
policy. This rider is important because it increases your monthly
benefit, while disabled, by a certain percentage rate listed in your
policy to keep pace with inflation. Options usually include 3% and
6% and the rates available also depends on the company issuing the policy.
Automatic
Increase
This
rider makes it easy for you to increase your disability income benefits,
despite any change in your health, income or
occupation. Usually the increase is offered once a
year on your anniversary. The benefit and premium paid will
increase each year at the designated percentage rate.
Not all insurance
carriers offer this rider. The purpose of this rider is to allow
your monthly benefit to increase annually without providing financial or
medical evidence of insurability. This is important if you do not
expect your earnings to increase dramatically or you are uninsurable.
Not Available in CA.
Return
of Premium
This
rider provides a return of premium after a set amount of years so long
as you do not make a claim under your policy. Not all insurance
companies offer this rider.
Group
Disability Replacement
The
Group Disability Replacement rider allows you to purchase more
disability income insurance, in spite of any changes in your health
when, before age 60, your group long term disability insurance is
canceled and not replaced or your employment terminates with an employer
where you were covered by a group long term disability plan at the time
of your termination.
Unemployment
Premium Waiver Option
During
a period of unemployment, this rider will help you to keep your policy
in force by refunding and waiving premiums, under certain conditions.
RetireGuardŽ
Rider
This
rider provides benefits to help cover pension contributions that would
have been made to eligible qualified defined contribution plans had the
insured remained healthy. RetireguardŽ is a total disability only
benefit. A trust is established and benefits are paid to the trust to be
invested in funds chosen by the insured. When the insured reaches age 65
or 67 (depending on the benefit period chosen/available) the trust
assets are distributed to the insured.
Catastrophic
Benefit Rider
This
rider provides benefits that cover up to 100% of pre DI earned income
when combined with a base policy in the event of a catastrophic
disability. Monthly benefits is available up to $8,000 per month.
Benefits are payable if the insured has (1) Presumptive Disability, and
(2) The inability to perform 2 of 6 activities of Daily Living or
has a severe cognitive impairment
