A disability income rider attached to a life insurance policy provides what benefit if the insured becomes totally disabled?

Why A is correct

A disability income rider pays the insured a monthly income if the insured becomes totally disabled, typically after a waiting period, for as long as the disability continues, subject to the rider's benefit period. It is added to a life insurance policy to replace lost earnings during a period of disability. This is distinct from a waiver-of-premium rider, which pays the policy premiums instead of providing income. The rider's cost depends on the benefit amount, the waiting period, and the definition of total disability stated in the policy.

Why the other options are wrong

• The rider provides income; it does not waive the death benefit, which remains payable on the insured's death regardless of the rider. This option therefore does not match the facts presented in the question and is not the correct answer to select.
• The rider does not pay the face amount during disability; the face amount is the death benefit paid at death, not a disability lump sum. This answer describes a different situation from the one in the question and is therefore incorrect under the facts given here.
• The disability income rider does not increase the death benefit; cost-of-living riders and paid-up additions serve other purposes. This choice does not fit the arrangement described in the question, so it is clearly not the right option to choose.

Memory hook

The disability income rider is a paycheck replacement while disabled.

Why A is correct

A disability income rider attached to a life insurance policy pays the insured a monthly income if the insured becomes totally disabled, typically after a waiting or elimination period. The benefit amount is usually limited to a specified percentage of the policy's face amount and is payable for a defined period. The rider adds protection for the insured's earning power while the life policy continues to provide the death benefit for the family. The elimination period and the benefit cap make the rider affordable, and the agent should explain both so the insured understands the rider is supplemental income protection rather than a replacement of the death coverage.

Why the other options are wrong

• B) Waiving the death benefit would defeat the purpose of the life policy; the rider adds income protection and does not remove the death coverage. The base policy keeps its death benefit; the rider only adds the income protection.
• C) The face amount is paid at death, not during disability; the rider pays monthly income, not the lump-sum death benefit. The face amount is reserved for death; the rider pays a smaller monthly income during disability.
• D) The rider does not reduce the cash value; it provides an additional income benefit while the base policy continues unchanged. The cash value is untouched by the rider, and the base policy's economics do not change.

Memory hook

Disability rider = the policy sends you a paycheck while you cannot earn one.

Why A is correct

A disability income rider pays the insured a monthly income if he or she becomes totally disabled, usually after a waiting (elimination) period and often until a stated age such as 65. It adds disability income protection to a life policy and charges additional premium. It differs from a waiver of premium rider, which merely excuses premium payments, and from accelerated death benefits, which advance death proceeds.

Why the other options are wrong

• B) Waiving the death benefit is not the function of the rider; it pays income during disability.
• C) The death benefit is not increased by this rider during disability.
• D) The face amount is not paid in a lump sum upon disability; the rider pays periodic income instead.

Memory hook

Disability income rider = a monthly paycheck when you cannot work, bolted onto a life policy. Waiting period first, then checks.