What does a "disability income rider" provide?

A disability income rider is an additional provision that can be attached to a life insurance policy or an individual disability income policy. This rider provides income benefits to the policyholder if they become disabled and are unable to work. Essentially, it is designed to help replace lost income due to a disability, ensuring that the policyholder can maintain their financial obligations and meet everyday expenses during a time of need.

This makes the disability income rider a vital financial safety net for individuals who rely on their earnings to support themselves and their families. It is important to note that the benefits typically start after a waiting period and are limited to a specified amount per month for a predetermined duration.

Other options do not accurately describe what a disability income rider provides. While premium discounts and payouts for accidents might be features of some insurance products, they do not represent the primary function of a disability income rider. Additionally, extended coverage for family members is unrelated to the purpose of this rider, which focuses solely on income replacement for the insured individual who suffers a disability.