Which rider provides a monthly income based on a percentage of the face amount when disabled?

Which rider provides a monthly income based on a percentage of the face amount when disabled?

• A. Waiver of premium rider
• B. Disability income
• C. Riders covering additional insured
• D. Family term rider

Answer: (B)

Disability income is designed to replace part of your earning power if you become totally disabled and can’t work. This rider pays a monthly benefit, calculated as a percentage of the policy’s face amount, after any waiting period. The idea is to provide steady cash flow to cover living expenses while you’re unable to work. This differs from a waiver of premium, which only pauses or waives your premiums during disability but does not provide a monthly income. Riders covering additional insured or family term riders add coverage for others or extend term coverage, not disability-related income. So, the rider that pays a monthly income based on a percentage of the face amount when disabled is the disability income rider.

Disability income is designed to replace part of your earning power if you become totally disabled and can’t work. This rider pays a monthly benefit, calculated as a percentage of the policy’s face amount, after any waiting period. The idea is to provide steady cash flow to cover living expenses while you’re unable to work.

This differs from a waiver of premium, which only pauses or waives your premiums during disability but does not provide a monthly income. Riders covering additional insured or family term riders add coverage for others or extend term coverage, not disability-related income.

So, the rider that pays a monthly income based on a percentage of the face amount when disabled is the disability income rider.