NYL adds unemployment rider to DI. (New York Life Insurance Co., disability insurance)

National Underwriter Life & Health-Financial Services Edition, December, 1992 by Koco, Linda

New York Life Insurance Co has begun adding a rider to newly issued individual disability insurance policies that prevents the policy from lapsing if the insured becomes unemployed. The rider provides that payments and benefits can be suspended for up to one year only in the case of policyholder unemployment. Thirty one states have already approved the rider which can be attached at a client's request at no extra cost.

What if there were a disability income policy that wouldn't lapse if the ensured became unemployed? Could such a policy be offered, without exposing the insurer to undue financial risk?

New York Life not only thinks it can be done, the company has done it. The New York City insurer has begun attaching a new "unemployment rider" to all its...

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