If your disability income rider includes this stipulation, you’ll receive monthly revenue at a time when you need it most. This can be quite a large benefit if the policy’s face amount is big.
By having a disability income rider on your policy, you are protected. With this, you receive a monthly income (or just a waiver of premium as seen in the next section) as long as you meet the requirements for disability in your policy. This income is often 1 percent of the policy’s value—someone with a $250,000 policy would receive $2,500. Depending on your policy’s terms, you may have to be disabled for a certain period of time before you are able to request your disability income.
This source of revenue might last as long as the insured remains alive, or until a certain age, based on the policy’s specific language.
Getting income from the disability income rider will raise the cost of a policy, but the benefit tends to outweigh the additional costs. Although the higher rate is still cheaper than the actual life insurance fees for the policy, it is really important to know what exactly these additional expenses are before adding them.