What Is Future Income Option With Disability Insurance?

  1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    The future income option with Disability Insurance is a very popular rider chosen on disability insurance policies. Also, called the "future increase option" rider, this feature guarantees that you will be able to purchase additional disability coverage at specified dates in the future. Thus, as your income grows, you can grow your disability coverage without having to go through underwriting and qualify all over again.
    Answered on July 22, 2013
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  2. 2180 POINTS
    Kelly Moser
    Social Media Strategist, Disability Insurance Services, California
    If you have the future income option or FPO rider on your policy, be sure to ask your agent to fully explain how the rider works on your particular policy.  The provisions vary from carrier to carrier.  Some carriers will send you a letter every year asking if you've increased income, and if you decline to use your FPO after a specified amount of times, they'll no longer keep the rider on your policy.  Other carriers will also let you use your FPO on an "off anniversary" if you apply for more coverage within 90 days of receiving a raise.
    Answered on November 25, 2013
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  3. 5877 POINTS
    Stan Cox II
    Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
    Basically the "future income rider" on an income disability insurance policy provides for the likely event that your income will increase in the future. Since income disability insurance pays only up to a maximum of 60% of your income, as your income increases you would naturally want the amount of your coverage to increase correspondingly. Typically the increase is based on a cost of living increase, but there are variables that can be included. Your insurance agent should be able to explain the options available with the rider and how it works.
    Answered on October 15, 2015
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