As people are determining how a disability will affect their financial futures, the rider known as the Future Increase Option is a topic worthy of consideration. This option offers a way to include income increases that the customer may receive in the future. For example, typical disability coverage only considers the income received at the time of the policy application; therefore, future raises and increases in income do not affect the amount of coverage. The Future Increase Option rider has the ability to guarantee one's insurance for a specified time period, typically up to 55 years of age. What this means is that as a person ages and income level increases, an individual can receive an increase in monthly benefit that is not dependent on changes in health status.
Most plans with the future increase option only require a current tax return copy to verify income levels and will then provide an increase in benefits. No health status information is required. This means that even if one's health level decreases, they will be able to continue receiving disability coverage. On the flip side, a person who does not have the future increase option may be denied continued coverage based on health or income changes.
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