Disability Income Rider

What Does Disability Income Rider Mean?

A disability income rider is an optional add-on to a life insurance policy that allows the insured to stop paying premiums in the event they become disabled for at least six months. Depending on the particular rider, the policyholder may also receive monthly income payments at a rate of 1 percent of the full value of the policy.

Insuranceopedia Explains Disability Income Rider

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