Should You Buy Disability Insurance Riders?
When you have decided to get a disability insurance plan, you will then need to decide what riders or extras you want. Some of the riders will cost you, and cost you big, but they can be life savers. For example, ‘own occupation' coverage will cover you if you cannot perform the exact same job as you did before you became disabled. This can cost you an extra 40 percent on your plan but if you can afford it you may want it.
Other important riders to consider if you can afford them are things such as retirement age, cost of living adjustment, and future purchase option. These break down as follows:
- Retirement Age: Retaining your coverage until your retirement age will likely cost you up to an extra 15 percent.
- Cost of Living Adjustment: This may add 20 percent to the policy but will cover you when inflation makes your cost of living go up.
- Future Purchase Option: This is a big one and will likely run you an additional 25 percent but will allow you to increase your coverage at a later date if you are making more money with the best part being you will not be required to take another physical.
You should also be sure to check that your plan will not be able to be canceled at any time from the provider and that your renewal will renew at the same rate provided you pay your premiums on time. This type of coverage is usually automatic with most plans but it is certainly worth checking out just in case.
There are now many types of insurance that you can just go online to obtain. However, when it comes to long-term disability insurance it is probably in your best interest to sit down with a professional and thoroughly weigh out all of your options. Though the conversation may not be the most fun you can have it is most likely going to be one of the most important conversations you can have. If you end up being disabled it will end up being the absolute most import conversation of your life.