What additional benefits are available?
Social Security
If you become seriously disabled before reaching age 65 and you have a steady work history, you may be eligible for a monthly Social Security disability payment. The payment may be equal to the amount you would get if you had reached age 62 at the time the disability occurred. Disability benefits generally increase each year to keep pace with inflation.
Riders
Most insurers also offer several optional benefits to enhance your policy. Among the more common riders are the following:
Cost of Living Adjustment (COLA)
COLA provides for an annual increase in benefits (after you have been disabled for a year) based on either the Consumer Price Index of Urban wage earners (CPI-U) or a predetermined percentage. This helps your benefits keep pace with inflation, particularly if you are disabled for a long time.Future Purchase Option (Guaranteed Insurability Option)
This rider allows you to purchase additional disability income insurance as your income increases without providing proof of medical insurability. Even if you later developed a condition that would normally prevent you from obtaining additional coverage, you could still increase your benefits.Residual Benefit
This pays you a portion of your monthly disability benefit if you have a drop in income due to a disability (for example, if you are working part time). In most cases you need to satisfy a minimum percentage loss in earnings (for example, a 20% loss) to qualify.Social Security Rider
If disabled, these riders pay benefits if you are not able to collect Social Security due to their definition of disability. Usually they pay after the waiting period for the policy and during the five-month period (sometimes up to a year) while you are waiting for Social Security benefits to begin. If Social Security denies your claim, this rider will continue to pay benefits for the duration of the benefit period.
