Life & Health Insurance Practice Exam 2025 – Your All-in-One Guide to Exam Success!

The Future Increase Option rider is designed to allow policyholders to increase their coverage without the need for additional medical examinations, provided certain conditions are met. This feature is particularly beneficial for individuals who anticipate that their income or financial needs may rise due to career advancements or inflation. When this rider is included in a disability policy, it grants the insured the right to purchase additional coverage at specified intervals without undergoing the standard underwriting process, which typically includes medical evaluations.

This flexibility makes it an attractive option for individuals concerned about their future financial needs in case they become disabled. The potential for increased income through promotions or annual salary raises can be a concern, and having the ability to increase the policy limits without the barriers of medical assessments simplifies the process for policyholders.

The other riders mentioned do not typically provide similar provisions for increasing coverage without medical checks. For instance, the Cost of Living Adjustment adjusts benefits based on inflation but does not necessarily allow for an increase in coverage limits. Presumptive Disability applies under specific conditions of total disability but does not relate to increasing coverage limits, and Recurrent Disability concerns the recurrence of a previous condition rather than extending coverage options.