Understand Disability Insurance Riders

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Disability insurance includes the following riders and benefits that allow the insured to customize the coverage to meet the exact needs of the insured. some of the following might be included in any disability insurance policy.

1. Automatic insurability
This rider if it is included in the policy allows the insured to increase the monthly benefit on specified option dates without providing medical evidence. The insured only needs to notify the insurer of their intent to exercise this option to increase the coverage,

2. Cost of living (COLA)
Under this Rider, any adjustment made to protect the insured's monthly benefit against inflation while hr/she is making a claim.
The monthly benefit is increased which is
a) Guaranteed by the insurer.
b) Guaranteed base on the consumer price index (CPI).
when the insured has recovered, the monthly benefit automatically returns to the original contract amount.

3.First day hospital
It reduces the Elimination Period or waiting period to zero day when the insured confined to a hospital.

4. Premium refund
It provides a lump sum payment in the event of an accidental death or the accidental loss of one or two limbs or sight.

5. Accidental death and dismemberment (AD)
It provides a refund of percentage of annual premium, provided the insured remains healthy for a stated period of years.

6. Patient protection
This rider is designed to protect the income of health professionals if they unfortunately contract HIV virus.
To qualify for coverage under this Rider, the insured would be considered unable to do a particular duty as follow:
a)Legally prohibited the insured from doing it
b) Written recommendation from the governing body that insured must stop performing the duty.
Benefit start as soon as job performance is affected for the length period of the policy.

7. Retirement income protection
A monthly benefit, in addition to the disability benefit, is deposited into a non-registered retirement savings contract and cannot be removed from the retirement savings plan until age 65.
Please notes that interest of the fund will be taxable on an annual basis.

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