The Disability Insurance elimination period is the time between becoming disabled and receiving your Disability Insurance payments. The longer the elimination period, the lower the Disability Insurance premium usually is, so many people choose an elimination period of 90 days for Long Term Disability Insurance. That means that you would have to have been unable to work for 90 consecutive days before your Disability payments would start being paid to you.
The terms of purchasing long term disability that you should be familiar with are these.
Elimination period is the time between you are diagnosed by a doctor that you are medically disabled and the time you begin to receive benefits. The most common elimination periods are 30-60-90-180-360 days. The rule of thumb is the longer the elimination period the lower your premiums. Most good disability insurance carriers do go back and pay you from the first day of disability once the elimination period has been satisfied in a lump sum amount.
Benefit period is another term to be familiar with as well. This is the period in which benefits will be paid to you once they commence. Common benefit periods are 2 years, 5 years, 10 years, 20 years or age 65 and 67 years old. I would recommend choosing the age versus years. If you are permanently disabled at a young age, you do not want to lose your benefits before becoming eligible for social security.
The last term is future purchase options. This allows you to purchase more disability as your income increases without proof of insurability. In other words, you will not be reunderwritten. During your work life you will probably earn more money because of your increase knowledge and skills. This option allows you to insure that aspect.
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Elimination period is the time between you are diagnosed by a doctor that you are medically disabled and the time you begin to receive benefits. The most common elimination periods are 30-60-90-180-360 days. The rule of thumb is the longer the elimination period the lower your premiums. Most good disability insurance carriers do go back and pay you from the first day of disability once the elimination period has been satisfied in a lump sum amount.
Benefit period is another term to be familiar with as well. This is the period in which benefits will be paid to you once they commence. Common benefit periods are 2 years, 5 years, 10 years, 20 years or age 65 and 67 years old. I would recommend choosing the age versus years. If you are permanently disabled at a young age, you do not want to lose your benefits before becoming eligible for social security.
The last term is future purchase options. This allows you to purchase more disability as your income increases without proof of insurability. In other words, you will not be reunderwritten. During your work life you will probably earn more money because of your increase knowledge and skills. This option allows you to insure that aspect.