Agent Owner, Gilmore Insurance Services, Marysville, Washington State
What are the main characteristics of long term disability insurance? I am guessing that you mean features to look for in long term disability insurance?
First! the definition of disability must be short and sweet, unable to do the material duties of your current occupation. For long term, this must not ever change. No, after 2 years the definition means.... I mention short and sweet because I have found the longer it take them to spell this out the more probable they will change things down the road. Lots of words in a definition of disability section usually aren't in the insureds favor.
Second. A good COLA rider. If you are concerned about a long period of disability like years and possibly decades, a payout that works for year one, is woefully short for year 20. A Cost Of Living Adjustment that keeps the payout relevant to each year you're out is very valuable.
Third. A good residual income rider. This helps if you are able to return to work, but at a reduced capacity.
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First! the definition of disability must be short and sweet, unable to do the material duties of your current occupation. For long term, this must not ever change. No, after 2 years the definition means.... I mention short and sweet because I have found the longer it take them to spell this out the more probable they will change things down the road. Lots of words in a definition of disability section usually aren't in the insureds favor.
Second. A good COLA rider. If you are concerned about a long period of disability like years and possibly decades, a payout that works for year one, is woefully short for year 20. A Cost Of Living Adjustment that keeps the payout relevant to each year you're out is very valuable.
Third. A good residual income rider. This helps if you are able to return to work, but at a reduced capacity.