PSI Ohio Insurance Practice Exam

What type of disability income rider allows for the purchase of additional coverage without proving insurability?

1. Waiver of premium rider

2. Guaranteed insurability rider

3. Future increase option

4. Accidental death rider

The correct answer is: Future increase option

The correct response highlights the future increase option rider, which specifically allows policyholders to purchase additional disability income coverage at predetermined intervals without the need to prove insurability. This feature is particularly beneficial for individuals who might experience changes in their health status over time; in such instances, proving insurability could be challenging or even impossible. By providing the opportunity to increase coverage without further medical evaluations, this rider helps ensure that policyholders can maintain adequate protection as their financial needs potentially grow. In contrast, other riders like the waiver of premium rider primarily focus on premium payments in the event of a disability, while the guaranteed insurability rider allows for the purchase of additional life insurance in the future but not specifically for disability income. The accidental death rider provides benefits only in the event of death caused by an accident and does not involve disability income enhancement. Thus, while those riders serve other important functions, they do not grant the same flexibility in increasing disability income coverage without requiring proof of insurability.