Agent Owner, Gilmore Insurance Services, Marysville, Washington State
What to look for in Disability Insurance? While there are many options to consider with disability insurance, a "good" disability policy comes down to one defining sentence. The most important thing is "the definition of what disability IS."
You see payment from a disability plan all comes down to what qualifies as a disability based on the definition of disability in the contract (policy). If it is not simple and straight forward in this definition, you might want to look elsewhere. Pretty much beyond the first couple sentences about the definition of disability in a DI policy are terms where they take away from the definition, they exclude and make exceptions. The best policies are straight forward without a lot of fluff when it comes to that definition. And with a disability policy, words are everything.
It is important for your policy to cover residual disability. That way, if you are only able to go back to work part time, or are not making as much as before because you are not working to your full capacity, you can still receive a partial disability benefit.
You also want to insure yourself for your own occupation. If you are a computer programmer, you don't want to have to take a job cleaning computers because you can't concentrate long enough during your recover to do programming. the "own occupation" feature will allow you to receive benefits until you can get back to your own type of job.
There are a few main components to consider when purchasing disability insurance besides the normal reputation of the agent and the ratings and reputation of the insurance company.
The first component is the elimination period. This is the amount of time between your medical diagnosis of being disabled and the time you begin to receive benefits. The most common are 30-60-90-180 days. You need to be sure you have enough savings to last until your benefits begin.
The second component is the benefit period. This is the period of time that once the benefits start they will continue to pay. The most common benefit periods are 2 years to 20 years. Some policies pay to age 65 or now 67 when your social security benefits start. I recommend the later.
The third component to consider is premiums. The above to dictate your monthly or annual premium. If the premiums are stretching your budget too far and an emergency causes financial hardship and are forced to drop your disability insurance coverage, then it was just an exercise in futility.
I recommend using an experienced independent disability insurance broker to help you navigate your choses. It can be a rather complicated purchase if you are not familiar with how disability insurance works. Good luck.
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You see payment from a disability plan all comes down to what qualifies as a disability based on the definition of disability in the contract (policy). If it is not simple and straight forward in this definition, you might want to look elsewhere. Pretty much beyond the first couple sentences about the definition of disability in a DI policy are terms where they take away from the definition, they exclude and make exceptions. The best policies are straight forward without a lot of fluff when it comes to that definition. And with a disability policy, words are everything.
You also want to insure yourself for your own occupation. If you are a computer programmer, you don't want to have to take a job cleaning computers because you can't concentrate long enough during your recover to do programming. the "own occupation" feature will allow you to receive benefits until you can get back to your own type of job.
The first component is the elimination period. This is the amount of time between your medical diagnosis of being disabled and the time you begin to receive benefits. The most common are 30-60-90-180 days. You need to be sure you have enough savings to last until your benefits begin.
The second component is the benefit period. This is the period of time that once the benefits start they will continue to pay. The most common benefit periods are 2 years to 20 years. Some policies pay to age 65 or now 67 when your social security benefits start. I recommend the later.
The third component to consider is premiums. The above to dictate your monthly or annual premium. If the premiums are stretching your budget too far and an emergency causes financial hardship and are forced to drop your disability insurance coverage, then it was just an exercise in futility.
I recommend using an experienced independent disability insurance broker to help you navigate your choses. It can be a rather complicated purchase if you are not familiar with how disability insurance works. Good luck.