A life insurance policy includes a disability income rider. If the insured becomes totally disabled as defined by the policy, the rider will typically:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A disability income rider on a life policy provides monthly income payments to the insured if total disability occurs, replacing lost earnings. Benefits are typically expressed as a stated monthly amount or a percentage of the face amount, and payments begin after an elimination period while the insured remains disabled. The rider does not increase the death benefit, does not convert the policy to health insurance, and does not pay the death benefit early. The base life policy remains in force, often with premiums waived under a related waiver provision.
Why the other options are wrong
- B) The rider pays income during disability; it does not increase the policy's death benefit.
- C) The rider adds disability income coverage; it does not convert the policy into a medical insurance plan.
- D) Paying the death benefit while living is the function of an accelerated death benefit rider, not a disability income rider.
Memory hook
Disability rider = the policy that pays you a paycheck while you cannot work, on top of staying in force.