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Policy Matters

Second Quarter 2022


LLIS doesn’t recommend a lot of riders with the policies we help your clients get, but here are some DI riders we do recommend, based on the individual’s needs and wishes.


When a client has been on claim for at least a year, their monthly benefit will increase each policy anniversary date to offset inflationary effects.

Client Example:

Base Monthly Benefit COLA (after year 1) New Monthly Benefit
$5,000 3% ($150) $5,150

Catastrophic (CAT)

This rider covers your client in the worst-case scenario: Becoming catastrophically disabled. The odds of going back to work are low, so an additional monthly benefit is paid that will provide your client’s pre-disability earnings at 100%, compared to 60% of traditional disability coverage.

Client Example:

Base Monthly Benefit CAT New Monthly Benefit
$5,000 $3,000 $8,000

Own Occupation

This rider allows your client to collect full benefits from the disability policy plus any income in a new occupation. Without this rider, any monies made from the new occupation would offset the base monthly benefit.

Client Example:

A pediatrician can no longer work as a physician, however can teach medicine.

With Own Occ
Base Monthly Benefit Teaching Salary New Monthly Benefit
$5,000 $4,000 $9,000
Without Own Occ
Base Monthly Benefit Teaching Salary New Monthly Benefit
$5,000 $4,000 $1,000


Without this rider, your client must be fully disabled to receive benefits. With it, your client can be partially disabled -- working part-time -- and still receive benefits. Often, a client doesn’t return full time immediately following a disability. When easing back into work after an illness or injury, this rider will supplement lost income from the hours a client is unable to work, providing benefits starting at 15-20% of lost income.

Client Example:

Your pediatrician client goes on a ski trip and takes a fall on the slopes, hurts a shoulder, and can only work part-time, earning just 50% of pre-disability salary.

Residual/Partial Rider
Base Monthly Benefit Part-time Salary New Monthly Benefit
$5,000 $2,500 $2,500

Kathy Bilodeau is a rider expert. Disability insurance and Harleys.


Term Life Insurance | Low-Load Universal Life (Individual & Survivorship) | No Lapse Guaranteed Univeral Life (Individual & Survivorship) | Long Term Care Insurance | Disability Insurance | Critical Care Insurance | Low-Load Variable Annuity | Immediate and Fixed Annuities | Low-Load Variable Universal Life | Hybrid Life/LTCi | Hybrid Annuity/LTCi

(We recommend low-load permanent life insurance and annuities when possible)

(Not all policy types available in all states)

For a list of current providers, visit the Advisor Tools section of our website and click on "Insurance Companies We Work With".

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