Disability Social Insurance Supplement (SIS)

A Social Insurance Supplement (SIS) is a type of disability insurance rider that is designed to work in conjunction with social insurance programs, such as Social Security. The SIS is intended to provide additional income to an insured individual if their disability benefits under the social insurance program are not sufficient to cover their living expenses.  

Here are some key features of a Social Insurance Supplement (SIS) rider:

• Purpose: To supplement social insurance benefits when they are not sufficient to cover an individual's living expenses due to a disability.
• Benefit Amount: The benefit amount is determined by the difference between the social insurance benefits received and the insured individual's pre-disability earnings. The SIS rider pays out the difference up to the benefit amount chosen by the insured.
• Coordination of Benefits: The SIS rider is coordinated with social insurance benefits to ensure that the combined benefit amount does not exceed the insured individual's pre-disability earnings.
• Premiums: Premiums for an SIS rider are typically higher than for a standard disability insurance policy since it provides additional benefits.  

• Qualifications: The eligibility criteria for an SIS rider vary by insurer, but generally, the insured individual must be receiving social insurance benefits and have a certain level of pre-disability earnings.

Here's an example of how an SIS rider works:  

Suppose an individual earns $50,000 per year and has a disability insurance policy with an SIS rider that pays a benefit of 60% of their pre-disability earnings, or $30,000 per year. If the individual becomes disabled and begins receiving social security disability benefits of $20,000 per year, the SIS rider would pay the remaining $10,000 per year to bring their total disability benefit to $30,000 per year. If the individual's social security benefits increase in the future, the SIS rider would adjust the benefit accordingly, up to the maximum benefit amount chosen by the insured.