Cost of Living Adjustment (COLA) – This optional rider helps to ensure that the monthly income needed increases over time to help stay in step with inflation. If you were to become disabled, every year you remain unable to work, the monthly benefit will increase by your chosen percentage, usually 0-10% annually. Although this rider does come with an additional premium, the future increases in benefits received do not. This rider is commonly chosen by younger workers with many working years remaining.
Partial Disability – Not all disabilities are total disabilities. Sometimes an individual can suffer from an illness or injury and still work part-time. In this case, typically, most disability insurance policies would not provide any benefits. This rider, however, provides a supplemental income in the instance where you may still be able to work part-time. This will help to ensure that your income does not suffer.
Refund of Premium – This rider provides for a return of your premiums after a period of years if you don’t end up using the policy.
Residual Benefits – Not all disabilities are total disabilities for life. In fact, if an individual is able to return to work, even on a part-time basis, most disability insurance policies would stop providing benefits. This is a concern since part-time work usually results in less than full income. For this reason, a residual benefits rider is very popular. This optional rider will provide additional benefits even if you are able to return to work less than full-time.
Social Insurance Offset – Although it is said that qualifying for Social Security Disability benefits are difficult and oftentimes denied, having a policy that coordinates with this potential additional source of income can provide a premium savings. This rider allows the policy to still provide up to its maximum benefits, but if you do end up qualifying for social insurance benefits, the policy’s benefits would be reduced accordingly. This provides a savings to the insurance company, and that savings is passed down to you.
Waiver of Premium – Upon qualifying for benefits, most policies will waive your premiums for as long as you remain disabled.