This rider can be quite expensive. This is insurance on your ability to purchase more insurance later. Disability Income Policy Options Policy Option Description of Option For the Typical Individual Benefit Period Period of time the insurance company is obligated to pay the monthly disability benefits. Common waiting periods run from 30 days to one year. 90 days Residual Benefit Pays a partial benefit when the insured is not totally disabled.
Residual benefits are a percentage based on the amount of income loss.
Highly recommended, but make sure you are not required to take a job in another occupation if you are qualified Qualification Period Period of time the insured must be totally disabled before residual benefits can begin. The right to purchase additional amounts of monthly benefits at regular intervals without the insurance company inquiring about the individual s health. This is an approximate aftertax replacement of the insured s income. Deducting the annual premiums is a great temptation. However, I caution that this not be done.