What does Future Purchase Option mean? Read on to discover the definition & meaning of the term Future Purchase Option - to help you better understand the language used in insurance policies.
Future Purchase Option
A future purchase option is a feature often specified in long-term disability insurance policies. By utilizing this option, policyholders can increase their insurance coverage each year as their income increases. The insurance company enables the policyholder to increase coverage without medical underwriting. However, the policyholder would need to pay a higher premium for the enhanced cover.
We hope the you have a better understanding of the meaning of Future Purchase Option.