There are four basic benefit periods to choose from. They are two-year, five-year, benefits to age 65, and graded lifetime extension benefit period. Many disability policies offer protection for individuals who qualify up to their 65th birthday and in some cases even their 67th birthday. However, what will they do beyond that point in time? How will they pay expenses that inevitably occur beyond those ages? The answer lies in the lifetime extension benefit period. Many individuals in their 20s, 30s and early 40s have not yet had the necessary years to save for their retirement. Therefore it would seem appropriate for them to consider applying for a graded lifetime extension benefit period. Here are a few examples of how the lifetime extension benefit period could work at various ages:

Any individual who is disabled prior to age 45 could receive his or her disability benefit up to the age of 65, and he or she would also receive 100 percent of that benefit for the rest of their life as long as then remain totally disabled. Any individual who is totally disabled at the age of 50 and remains continuously disabled would receive his or her benefit up to age 65. Afterwards, the individual would receive 75 percent of the monthly benefit for total disability as long as they remain totally disabled.

Any individual who is disabled at age 55 and remains continuously disabled would get his or her benefit up to age 65 and afterwards would receive 50 percent of the benefit for the rest of the his or her life as long as they remain totally disabled. An individual at age 60 who becomes totally disabled and remains so would receive benefits to age 65 and then receive 25 percent of the total disability benefit for the rest of his or her life as long as they remain totally disabled. Essentially, each year after the age of 45 when disability manifests, the benefit will be 5 percent lower after the age of 65. Even a 63-year-old who becomes totally disabled would receive benefits until age 65 and then 10 percent for the rest of his or her life once again as long as they remain totally disabled.

Please note that the graded lifetime extension benefit period is available only to occupational classes 6, 5, 4, 4P, and 3 and is not available in the state of California.

The Cost of Living Adjustment Rider

This rider is commonly referred to as COLA, or the Cost of Living Adjustment Rider. Under the ProVider Plus policy, you have the choice of either 3 or 6 percent, both of which are compound interest. Many companies in the industry only offer simple interest and not compound interest in their Cost of Living Adjustment Riders. The ProVider Plus Cost of Living Adjustment Rider does not limit the policy to a cap as many other policies do. Other policies may limit the Cost of Living Adjustment Rider adjustments to twice the original benefit. ProVider Plus also will entitle the policyholder, upon recovery, to keep any cost of living adjustments in the event that the policyholder is no longer disabled and will not charge additional premium for keeping the larger benefit. Many other companies will allow the policyholder to keep those increases upon recovery if he or she is willing to pay for those increases whereas Provider Plus will not charge for those increases prior to age 65. This becomes especially valuable in the event of a subsequent disability. We believe that this is an essential rider. Over time, the purchasing power of a dollar can erode significantly. For example, a first class postage stamp cost about 17 cents about 20 years ago. In 2004, it was double that. Had someone been permanently disabled beginning in 1984 and had no cost of living increase rider, it is not hard to figure out what could have happened to them financially.