Some coverage characteristics of Disability Insurance are:
1) Length of coverage. Can be years to until retirement, for Long Term Disability Insurance.
2) Elimination period. The time you must be disabled before benefits are collected.
3) Percent of income replaced.
4) Features such as whether the policy will pay if you cannot perform your own occupation, if you are partially disabled, etc.
5) Renewability, opportunities to increase coverage in the future, etc.
Social Media Strategist, Disability Insurance Services, California
Some other characteristics include the following:
1. Occupational class: A category the insured falls into based on their job title and specif duties. The occ class dictates the premium.
2. Rating: This comes when an underwriter approves an application, but with a higher than normal premium because the insured is a higher risk (typically due to their health history, smoking history, weight, etc.). The rating can be anything from 15 to 100% more in premium, though it can often times be reconsidered after a few years if the client loses and keeps off weight, stops smoking, etc.
3. Cost of living rider (COLA): This optional benefit increases the disability benefit by a certain percentage, typically determined by the latest Consumer Price Index.
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1) Length of coverage. Can be years to until retirement, for Long Term Disability Insurance.
2) Elimination period. The time you must be disabled before benefits are collected.
3) Percent of income replaced.
4) Features such as whether the policy will pay if you cannot perform your own occupation, if you are partially disabled, etc.
5) Renewability, opportunities to increase coverage in the future, etc.
1. Occupational class: A category the insured falls into based on their job title and specif duties. The occ class dictates the premium.
2. Rating: This comes when an underwriter approves an application, but with a higher than normal premium because the insured is a higher risk (typically due to their health history, smoking history, weight, etc.). The rating can be anything from 15 to 100% more in premium, though it can often times be reconsidered after a few years if the client loses and keeps off weight, stops smoking, etc.
3. Cost of living rider (COLA): This optional benefit increases the disability benefit by a certain percentage, typically determined by the latest Consumer Price Index.