Insurance policies often bear a resemblance to a car purchase. As soon as you decide for the fundamental insurance policy, there is a large array of alternatives, riders and tweaks that you may potentially need. They can add to your policy and help account for your individual risks easily. Some optional riders are more often applied than others, but all may be beneficial to you.
RBC Insurance now offers a Business Insurance Option, which is basically akin to the Future Income Option which applies to its disability insurance policy.
The business insurance option is a policy rider attachable to RBC’s Disability Insurance. The rider is an affordable one guarantees for the insured an opportunity to add additional protection without having to undergo a medical examination. This is good in the event that the value of their business increases.
Akin to the Future Income Option, the Business Insurance Option guarantees that the owners are incontestably insurable in the future. If one of the partners was diagnosed with a health issue (such as diabetes) but, at the same time, their company grew in its worth. Purchasing extra coverage down the road could very well become an issue in a traditional instance. However, thanks to the Business Insurance Option, the business owner can compound their personal income coverage once every two years from the policy’s effective date. This date—often being the same as the beginning date of the rider—is the so-called “option date”.
These are the specifics of this particular disability rider:
- The highest face value of the newly acquired coverage is eighteen per cent of the rider figure at a time.
- Financial data attesting the client’s claim to purchase additional coverage is required, but the insured won’t need to provide additional health-related information when these option dates are applied.
- The additional premium is, however, calculated based on the insured’s current age, not his or her original application age.
- The added option income falls under a matching type of coverage and agreement terms as those of underlying insurance plan.
Learn about more special policy riders and options. Stay updated about the latest insurance news, check out the LSM Insurance online portal.