Purchase Option (Future Increase) Rider
A guaranteed purchase option promising the right to increase monthly benefits at specified option dates with only financial underwriting, not medical.
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A young professional buys a disability income policy with a future purchase option rider. What does this rider allow?
The insured to buy additional disability coverage at specified future dates or life events without evidence of insurability — A future purchase option rider, also called a guaranteed insurability option, permits the insured to purchase additional disability income coverage at stated intervals or upon specified events, such as a birthday milestone, marriage, the birth of a child, or an income increase, without having to prove insurability again. This protects an insured who develops a health condition after the policy is issued, because the insurer must offer the additional coverage at standard rates despite the new condition. The rider addresses the fact that disability needs tend to grow as income grows.
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