Disability Income Rider

What Does Disability Income Rider Mean?

A disability income rider is an optional add-on to a life insurance policy that enables the insured to waive premium payments if they become disabled for at least six months. Depending on the specific rider, the policyholder may also receive monthly income payments, typically amounting to 1 percent of the policy’s total value.

Insuranceopedia Explains Disability Income Rider

The benefit of a disability income rider is that it enables a person with a life insurance policy to maintain coverage even if they can no longer pay premiums due to income loss from a disability. This ensures that the beneficiary would still receive a death benefit, and for qualifying policies, cash value would continue to grow, and dividends would still be paid.