Future Purchase Option Rider

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Future Purchase Option Rider A future purchase option (FPO) rider is a feature of some long-term disability insurance (LDI) policies that allows policyholders to increase their coverage periodically, or as their income increases, without having to go through medical underwriting. This means that even if your health deteriorates over time, you can still increase your coverage without having to prove that you are still insurable. The FPO rider is typically available for a limited period of time, such as 10 or 20 years. Once the FPO rider expires, you will need to go through medical underwriting if you want to increase your coverage. The cost of the FPO rider will vary depending on your age, health, and the amount of coverage you want to increase. However, it is typically a small price to pay for the peace of mind of knowing that you can increase your coverage without having to worry about your health. It is a way of keeping benefits on pace with inflation, based on increases in a policyholder's income, where premiums for the future purchase option will increase with age. Future purchase options are different from insurance inflation protection riders, which allow policyholders to increase coverage periodically over the course of their policy term. The Future Increase Option provides the right to exercise an increase in monthly benefit based on the following criteria: -Increase must be warranted based on your income. -Total Disability insurance cannot exceed allowable levels based on individual carrier guidelines. -Medical underwriting will NOT be required for benefit increases. -Increases can only be made during option periods, which are described in each policy. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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