In the context of a long-term disability claim, a rider is an additional provision or amendment to a disability insurance policy that modifies or enhances the coverage provided under the policy. Riders can be added to a policy at the time of purchase or later during the policy term, usually for an additional premium.
Common examples of riders in a long-term disability policy include:
- Own-occupation rider: This rider provides coverage if the insured is unable to perform the material duties of their own occupation, even if they are able to work in another occupation.
- Residual disability rider: This rider provides coverage if the insured is able to work but experiences a partial loss of income due to a disability.
- Cost-of-living adjustment (COLA) rider: This rider adjusts the benefit amount over time to keep pace with inflation.
- Catastrophic disability rider: This rider provides additional benefits if the insured suffers a severe disability, such as the loss of limbs or paralysis.
- Future increase option rider: This rider allows the insured to increase their coverage amount in the future without undergoing additional medical underwriting.
Riders can provide valuable additional coverage for individuals who want to tailor their policy to their specific needs and circumstances. It is important to carefully review the terms and conditions of any rider before adding it to a policy, and to consider whether the additional premium cost is worth the added coverage.