Disability Income Rider
Definition of "Disability income rider"
Addition to a life insurance policy stating that when an insured becomes disabled for at least six months, premiums due are waived. Depending on the rider, the insured may begin to receive a monthly income (usually 1 % of the face value of the policy), or only the premium may be waived. The length of time that income payments will continue depends on the definition of disability in the policy. During the time that premiums are waived, the life insurance policy stays in force, so that if the insured dies, the beneficiary receives the face value of the policy. Cash values continue to build, and if the policy is participating, dividends continue to be paid.
Popular Insurance Terms
Insurance policy that combines the characteristics of a debit insurance policy with that of an ordinary life insurance policy. These policies were historically sold by the debit agent. ...
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new dividend option under which the policyowner allows the dividends from the participating policy to be applied for the purposes of accumulating cash values. ...
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Death from other than accidental means. ...
Right of the policy owner as listed in a policy. An insured has the right to exercise all privileges and receive all benefits of the policy except when restricted by the right of an ...
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