Importance of the Residual Disability Rider
There are many policy riders that can be added to a Disability insurance contract.
As a consumer, it is very important to understand which riders are necessary and which ones are not.
The quality of your coverage and likelihood of it paying you could very well depend on which riders you choose.
The following is one rider that you should keep in high regard when purchasing Disability insurance: Residual Disability One of the most important riders that should be included on every Disability insurance policy is the Residual Disability rider.
This rider expands the definition of disability in a contract, to include partial disabilities.
Although the terms of this rider will vary with each contract, the concept will remain the same - A proportionate benefit will be paid if your earnings are reduced by at least 15-20% of your prior earnings due to an injury or illness.
To fully understand the importance of this rider, consider a common definition of Total Disability: "You will be considered totally disabled if you are unable to perform all of the material and substantial duties of your occupation.
" This means that only if you are unable to perform all of the material and substantial duties of your occupation will you be eligible for a claim.
But what happens if you are still able to perform half of them? Even more importantly, what happens if these shortcomings have created a significant loss of income? Without the residual disability rider, you would not qualify for a benefit.
Essentially, by not including this rider on your policy, you are restricting yourself to an "all or nothing" definition of disability.
Additionally consider the fact that seventy percent of all disabilities are caused by illnesses.
Most illnesses that can truly be disabling do not just appear from one day to the next and certainly will not disappear so quickly either.
Instead these illnesses will gradually worsen in the development stages and lessen in the healing stages, if curable.
Therefore it is very important to be certain that you will receive benefits while partially disabled, whether it is prior to a total disability or after.
Disability insurance is used to protect a person's income in the case of them being unable to work due to an illness, or injury.
Purchasing a Disability contract without including the Residual Disability rider leaves a huge GAP in the coverage.
Keep in mind that the chances of you suffering a partial disability are far greater than that of a total disability.
Therefore, this part of a disability contract should not be taken lightly.
Each company provides a different version of this rider.
Be sure to speak with your insurance broker about the options you have.
As a consumer, it is very important to understand which riders are necessary and which ones are not.
The quality of your coverage and likelihood of it paying you could very well depend on which riders you choose.
The following is one rider that you should keep in high regard when purchasing Disability insurance: Residual Disability One of the most important riders that should be included on every Disability insurance policy is the Residual Disability rider.
This rider expands the definition of disability in a contract, to include partial disabilities.
Although the terms of this rider will vary with each contract, the concept will remain the same - A proportionate benefit will be paid if your earnings are reduced by at least 15-20% of your prior earnings due to an injury or illness.
To fully understand the importance of this rider, consider a common definition of Total Disability: "You will be considered totally disabled if you are unable to perform all of the material and substantial duties of your occupation.
" This means that only if you are unable to perform all of the material and substantial duties of your occupation will you be eligible for a claim.
But what happens if you are still able to perform half of them? Even more importantly, what happens if these shortcomings have created a significant loss of income? Without the residual disability rider, you would not qualify for a benefit.
Essentially, by not including this rider on your policy, you are restricting yourself to an "all or nothing" definition of disability.
Additionally consider the fact that seventy percent of all disabilities are caused by illnesses.
Most illnesses that can truly be disabling do not just appear from one day to the next and certainly will not disappear so quickly either.
Instead these illnesses will gradually worsen in the development stages and lessen in the healing stages, if curable.
Therefore it is very important to be certain that you will receive benefits while partially disabled, whether it is prior to a total disability or after.
Disability insurance is used to protect a person's income in the case of them being unable to work due to an illness, or injury.
Purchasing a Disability contract without including the Residual Disability rider leaves a huge GAP in the coverage.
Keep in mind that the chances of you suffering a partial disability are far greater than that of a total disability.
Therefore, this part of a disability contract should not be taken lightly.
Each company provides a different version of this rider.
Be sure to speak with your insurance broker about the options you have.