A disability insurance policy may promise $6,000 in monthly benefits. But what happens if the policyholder becomes so severely disabled that they need assistance with everyday activities? What happens to their insurance premiums when they can no longer work? And what if their income increases significantly after purchasing the policy?
These are the questions Kyle Bennett of Eagle Cap Insurance addresses in a recent discussion about disability insurance riders.
For professionals and business owners in Idaho Falls, the distinction matters. A disability insurance policy is designed to replace part of your income when a covered illness or injury prevents you from working. Certain policy features can also provide additional benefits, protect your coverage during a qualifying disability, or allow you to increase coverage as your earnings grow.
Understanding those features before purchasing a policy can make a substantial difference in how the insurance responds later.
Watch Kyle Bennett: Three Disability Insurance Features Worth Understanding
In this video, Kyle Bennett, founder of Eagle Cap Insurance, explains three features that can be especially valuable in an individual disability income insurance policy: waiver of premium, future increase options, and catastrophic disability benefits.
Kyle uses an example involving a client with approximately $6,000 in base monthly disability coverage and an additional $4,500 catastrophic disability benefit. If the client qualified for both benefits under the policy’s terms, the combined monthly amount could reach $10,500.
The example illustrates why disability insurance deserves a closer review than simply comparing monthly benefit amounts.
The actual protection depends on the policy’s definition of disability, applicable riders, waiting periods, benefit duration, exclusions, and eligibility requirements.
1. Waiver of Premium: What Happens to Your Payments If You Become Disabled?
When someone becomes unable to work, their income may decline while regular expenses continue. Mortgage payments, groceries, utilities, and other household obligations still need to be managed.
A waiver of premium provision can help by eliminating the requirement to continue paying disability insurance premiums after the insured satisfies the policy’s qualifying disability conditions.
The National Association of Insurance Commissioners (NAIC) identifies waiver of premium as a common disability insurance feature. However, the point at which premiums are waived varies by policy. Some contracts require a specified period of disability before the waiver begins, and certain policies may reimburse premiums paid during a qualifying period.
For an Idaho Falls business owner or self-employed professional, this can be particularly useful. If the policyholder is unable to generate income because of a covered disability, the waiver may allow eligible coverage to remain in force without requiring ongoing premium payments during the qualifying period.
Important: A waiver of premium does not automatically begin whenever someone becomes sick or injured. The policy’s definition of disability and applicable waiting-period provisions control eligibility.
2. Future Increase Option: Can You Increase Disability Coverage Without Another Medical Exam?
Consider a healthcare professional who purchases disability insurance early in their career.
At the time, their income supports a particular monthly benefit. Over the next several years, their earnings increase as their practice develops.
The original disability benefit may eventually represent a smaller portion of their current income.
A future increase option rider can address that situation by allowing eligible policyholders to purchase additional disability coverage as their earnings increase, without undergoing new medical underwriting.
Insurers offering this feature may still require updated financial information, and increases remain subject to contractual limits, eligibility requirements, available exercise dates, and additional premiums.
For example, Guardian’s individual disability insurance information explains that its future increase option can allow policyholders to increase coverage without providing new medical evidence of insurability.
This is the distinction Kyle emphasizes in his video.
Someone whose income has increased may be able to increase coverage based on financial eligibility without having to establish their medical insurability again.
That can be valuable for physicians, chiropractors, dentists, attorneys, business owners, and other professionals whose income may grow substantially throughout their careers.
However, the feature is optional and varies by insurer. It should not be assumed that every disability insurance policy includes it.
How These Disability Insurance Features Work
| Policy Feature | Primary Function | What Idaho Professionals Should Verify |
| Base disability benefit | Replaces part of eligible income during a covered disability | Monthly benefit, definition of disability, elimination period, benefit period |
| Waiver of premium | Waives required premiums during a qualifying disability | When the waiver begins and how long it continues |
| Future increase option | Allows eligible increases in coverage without new medical underwriting | Income documentation, increase limits, exercise dates, additional premium |
| Catastrophic disability rider | Provides additional benefits for qualifying severe disabilities | ADL requirements, cognitive impairment provisions, benefit limits and waiting periods |
The NAIC advises consumers to evaluate coverage amounts, waiting periods, benefit periods, and optional policy provisions when comparing disability insurance.
3. Catastrophic Disability Rider: When Basic Income Replacement May Not Be Enough
This is where Kyle’s client example becomes especially important.
A catastrophic disability rider can provide an additional monthly benefit when the insured experiences a severe disability that meets the rider’s contractual definition.
Certain catastrophic disability riders use the inability to perform at least two activities of daily living as one qualification standard. Significant cognitive impairment may also qualify under some contracts.
The six commonly recognized activities of daily living are:
- Bathing
- Dressing
- Eating
- Toileting
- Continence
- Transferring, such as moving between a bed and a chair
These are different from broader activities such as driving, shopping, or managing finances.
For example, Guardian describes catastrophic disability benefits that may become payable when an insured cannot perform two or more activities of daily living, experiences qualifying cognitive impairment, or meets other specified conditions.
The exact definition is policy-specific. Meeting an activities-of-daily-living threshold does not automatically qualify someone for benefits under every catastrophic disability rider.
Kyle’s Example: How $6,000 Could Become $10,500 Per Month
Kyle describes a disability insurance arrangement with the following benefits:
| Coverage Component | Monthly Benefit |
| Base disability insurance benefit | $6,000 |
| Additional catastrophic disability benefit | $4,500 |
| Potential combined monthly benefit | $10,500 |
| Potential annual equivalent | $126,000 |
These figures come from Kyle’s client example and illustrate the potential combined benefit if the insured satisfies the requirements for both payments.
They are not a guaranteed payout, typical policy amount, or recommendation for every Idaho professional.
The purpose of catastrophic disability coverage is to provide additional financial resources when a severe disability may create needs beyond ordinary income replacement.
Depending on the circumstances, a household could face additional caregiving expenses, home modifications, transportation needs, or other financial pressures while the insured remains unable to work.
Why Disability Income Protection Matters for Idaho Business Owners
The financial importance of disability insurance becomes clearer when considering how many workers lack private long-term disability protection.
The Social Security Administration’s 2026 fact sheet reports that approximately 65% of private-sector workers do not have long-term disability insurance. It also estimates that about one in four people currently age 20 will become disabled and qualify for Social Security disabled-worker benefits before age 67. These are national estimates, not Idaho-specific figures.
For Idaho business owners, disability can create two separate financial problems.
The first is personal: household income may decrease or disappear. The second involves the business itself, particularly when operations depend heavily on the owner’s professional services.
A chiropractor who cannot treat patients, a contractor who cannot perform physical work, or a business owner whose disability prevents them from managing daily operations may experience financial consequences that extend beyond medical expenses.
The Idaho Department of Insurance explains that disability income insurance provides income when sickness or injury prevents an insured person from working and earning. It also distinguishes disability income coverage from workers’ compensation.
Personal disability income insurance generally protects the insured’s eligible earnings. Separate business overhead expense insurance may be worth evaluating when the objective is to help cover qualifying business operating expenses during an owner’s disability.
These are different insurance functions and should be evaluated separately.
What Should You Check Before Buying Disability Insurance?
Before comparing disability insurance quotes, examine how the contract defines disability and when benefits become payable.
For professionals, the definition of disability can be especially important. Some policies use an own-occupation definition, while others apply different standards. The distinction can affect whether someone qualifies for benefits when they cannot perform their regular professional duties but may still be capable of other work.
The waiting period also deserves attention. This is the period after a covered disability begins before benefits become payable. The benefit period determines how long eligible payments may continue.
Then review the riders.
A future increase option may be valuable when earnings are expected to grow. Waiver of premium can help preserve eligible coverage during disability. A catastrophic disability rider may provide additional financial resources under severe circumstances.
The appropriate combination depends on the applicant’s income, occupation, existing coverage, financial obligations, underwriting eligibility, and budget.
How Eagle Cap Insurance Helps Idaho Falls Professionals Review Their Coverage
Understanding disability insurance requires more than knowing the monthly premium.
Kyle Bennett and Eagle Cap Insurance help individuals and business owners evaluate disability income protection in relation to their earnings, professional responsibilities, and household financial needs.
For someone reviewing an existing policy, that conversation can include examining the base monthly benefit, waiting period, benefit duration, definition of disability, and available riders.
For someone purchasing coverage, Eagle Cap can help explain how different policy structures work and what questions should be addressed before applying.
This guidance is relevant to self-employed professionals, healthcare practitioners, contractors, business owners, and other income earners throughout Idaho Falls, Ammon, and surrounding communities.
The most important question is whether the policy would provide the type of financial protection you expect if you became unable to work.
Kyle’s video demonstrates why the details matter. Two disability insurance policies with similar base benefits can provide different levels of protection depending on their provisions and riders.
For Idaho professionals who depend on their ability to earn an income, understanding those differences before a disability occurs can be an important part of financial planning.
Schedule a conversation with Kyle Bennett:
Book an Appointment with Eagle Cap Insurance
Call Eagle Cap Insurance: 208-529-1522
Learn More: Disability Insurance in Idaho
Official Sources
- Idaho Department of Insurance: Disability Insurance
- NAIC: If a Disability Were to Keep You From Earning a Living
- NAIC: Simplifying the Complications of Disability Insurance
- Social Security Administration: Basic Facts
- Guardian: Individual Disability Income Insurance and Optional Riders
- Guardian: Activities of Daily Living Explained
Disclaimer: This article is provided for general educational purposes and does not constitute individualized insurance, financial, legal, tax, or medical advice. Disability insurance benefits, definitions, riders, underwriting requirements, premiums, exclusions, elimination periods, and benefit durations vary by insurer and policy. The benefit amounts discussed are based on Kyle Bennett’s illustrative client example and do not guarantee eligibility or payment under another policy. Review the actual insurance contract and consult a licensed insurance professional before purchasing or changing coverage.
