I'm helping my girlfriend shop around for IDI. It seems that there's a new rider (Benefit Increase Rider) these days different from the FPO/FIO that I'm used to in the past. We asked an independent broker to obtain quotes from the Big 5. Standard, Principal and MassMutual include a rider called Benefit Increase Rider or Benefit Update Rider (different names depending on which company, but same idea).
The rider allows the insured adjust there coverage/monthly benefit every 3 years so it's consistent with any changes in income in 3 year increments. Don't have to provide evidence of medical insurability like FIO/FPOs. Just have submit Income information. Each time, you have accept at least 50% of what they offer. Increaeses subject to I&P limits.
It's kinda hard to compare this new BI/BU rider to the FIO/FPO rider; not quite oranges to oranges.
I couldn't find a whole lot if info on this online.
What are the advantages of this Rider over the traditional FPO? Any thoughts WCI? LBK? or MR?
-Standard calls it "Benefit Increase Rider"
-Principal calls it "Benefit Update (BU) rider"
-Mass Mutual Calls it 'Benefit Increase Rider"
The rider allows the insured adjust there coverage/monthly benefit every 3 years so it's consistent with any changes in income in 3 year increments. Don't have to provide evidence of medical insurability like FIO/FPOs. Just have submit Income information. Each time, you have accept at least 50% of what they offer. Increaeses subject to I&P limits.
It's kinda hard to compare this new BI/BU rider to the FIO/FPO rider; not quite oranges to oranges.
I couldn't find a whole lot if info on this online.
What are the advantages of this Rider over the traditional FPO? Any thoughts WCI? LBK? or MR?
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