What is the function of an Additional Monthly Benefit rider in a disability policy?

The Additional Monthly Benefit rider in a disability policy is designed to provide income during the waiting period for Social Security disability benefits. This rider issues a monthly benefit while the policyholder awaits the approval and disbursement of Social Security benefits, which typically can take several months. The Additional Monthly Benefit is especially valuable because it addresses an immediate financial need during the period when a disabled policyholder may not have other income sources, ensuring they have some level of financial support as they navigate the delays often associated with Social Security applications.

This rider helps policyholders maintain financial stability during what could be a challenging time, bridging the gap until Social Security benefits start. In this context, the other options do not serve the same purpose. For example, a one-time benefit is not related to ongoing financial support during a waiting period, dependent coverage does not focus on the policyholder’s immediate financial needs, and a permanent benefit increase does not specifically address the waiting time for Social Security payments. Thus, the function of the Additional Monthly Benefit rider is clearly to assist during the Social Security waiting period.