Having a principal’s benefit update rider allows you to increase your coverage as your income grows. This is crucial because most trainees only get $5,000 a month in disability coverage, but specialists can get up to $30,000 per month.
But there are a few nuances with your benefit update rider. For example, you must increase it every 3 years (or else you’ll get trapped into your existing benefit amount). I had a client who decided not to upgrade, and it backfired on him when his new job created more stress than he imagined.
In this episode, you’ll discover how the principal’s benefit update rider works, and how to get the most coverage from it over the course of your career.
- How the benefit update rider allows you to increase your coverage as your income grows (0:45)
- Why trainees only get $5,000 per month in disability coverage (and how to get up to $30,000 per month) (1:12)
- How to increase your disability coverage (without updating your medical screenings) (2:03)
- Why removing the benefit update rider traps you at the same coverage amount forever (unless you switch insurance companies) (2:50)