Understanding Riders for Disability Insurance
Insurance policy riders are optional features. You can add them to enhance your coverage and customize a policy to fit your needs and preferences.
As you consider riders, keep the following in mind:
- Riders are typically purchased at the onset of the policy. You can not add them on later.
- Riders can be dropped from your policy later. However, dropping a rider can not be added on later.
Future Increase Rider
Your income will increase over time.
A future purchase option enables you to increase your disability coverage over time, and at designated periods. This option also enables you to obtain additional coverage without going through the underwriting process again. Below are some common features:
- Annual increases up to a certain age
- After pre-designated income increases
- After major life events (e.g., marriage, child birth, etc.)
- After loss or change of group coverage
Catastrophic Disability Rider
While the risk of catastrophic disability is low, the cost to add this rider is also low.
Most disability insurance carriers offer a catastrophic disability rider to cover catastrophic injuries or illnesses. Below are some examples:
- Loss of speech, eye sight, loss of hands or other limbs, and loss of speech
- Cognitive impairment
- Other major impairments
Cost-of-Living Adjustment (COLA)
With a Cost-of-Living Adjustment rider, your income payment from the disability policy will increase each year you are disabled to offset inflation.
If you are young as a dentist, you should strongly consider a COLA rider to offset the costs of inflation in the future. Otherwise, your income benefit from a disability policy will be fixed.
Student Loan Rider
Disability insurance can help you cover your remaining student loan debt if you can’t work. This rider is also relatively inexpensive but will have some limits as well.
As you can see, riders are attractive options to protect yourself. Most of the riders are not available group insurance coverage so you can see why many dentists want to explore riders across various insurance carriers to select the best options for your own situation.