What happens if you don’t submit your benefit update application on your triennial anniversary?

How do you increase your individual policy in the future?

Many individual disability insurance policies now have no cost increase riders that require you to submit your application every 3 years. These are referred to as Benefit Update Rider, Benefit Purchase Rider, Benefit Increase Rider. The name varies from company to company.

These increase riders require that you submit a new form every 3 years. The form only asks about your financial situation. What is your income and do you have any other group or individual disability insurance in force. There are no medical questions. 

Once the form is submitted, the company will review your criteria and determine if you are eligible for additional benefit. If you are eligible, they will make an offer. It is required that you accept at least 50% of the offer in order to maintain the rider on the policy.

It is important to note that if you don’t submit the form on your triennial anniversary, the rider will fall off of the policy. If you wish to increase your policy in the future, it would require medical questions.

Oftentimes, you may have a significant increase in income prior to the triennial anniversary. This can happen when you finish medical residency or make partner. Most companies will allow you to advance the option to increase if you have a 25% or 50% increase in income. This varies from company to company.

For more information about increasing your disability insurance policy or to request a quote, contact Set for Life Insurance today!