Disability Insurance: The Future Increase Option

Whenever you are purchasing disability insurance, you will have the option to purchase a future increase option. This is an additional rider that can protect you as your income increases. Here are the basics of the future increase option.

Calculating Income

Whenever you purchase a traditional disability insurance policy, you are going to guarantee yourself a certain amount of income if you become disabled. The amount of income that you can get from the policy will be determined by how much you are currently making. If you are not making that much money whenever you buy the policy, you will potentially be locking yourself into a lower income in the future.

Future Increase Option

If you purchase the future increase option, you will be able to take care of this potential problem. With the future increase option, the amount of your disability payment can increase based upon how much money you are making. Therefore, if you work in an industry that allows you to advance in your career, you will also be able to increase your disability insurance payment. You will simply have to provide the disability insurance company with proof that your income has increased and they will make the necessary changes.

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