Final answer:
Insurers require proof of income, medical examinations, and health history reviews when providing a disability income policy with a future increase rider to assess risk and determine premium rates.
Step-by-step explanation:
When insurers offer an insured disability income policy with a future increase rider, they typically impose underwriting requirements to manage their risk. These requirements may include proof of the insured's current income, medical examinations, and a review of the insured's health history. The underwriting process helps the insurer determine the likelihood of having to pay out a claim in the future. The future increase rider allows the policyholder to increase their disability coverage in the future without undergoing additional medical underwriting, which can be particularly beneficial as their income grows and their financial responsibilities increase. However, the initial underwriting process is crucial to establish the policyholder's eligibility and the premium rates.