There are many types of disability policies in the marketplace today and many different ways to customize a policy.
We believe that if disability insurance is important it is also important for the client to fully understand their policy and to make certain that it is designed to fit their unique situation.
Some of the important items to consider when purchasing disability insurance:
- Benefit Amount – the amount that the policy will pay to you should you become disabled.
- Benefit Period – defines how long benefits will be paid if you are disabled.
- Definition of Disability in Your Policy – An important part of any policy. Be sure to fully understand how “disabled” is defined.
Two General Types of Definitions of Disability
*Own Occupation, or “Own-Occ” – states that in order to be declared disabled you cannot perform your particular occupation.
*Any Occupation, “Any-Occ” – which would stipulate that you are unable to perform any occupation.
Two General Types of Disability Policies
- *Non-Cancelable Policy “Non-Can” – type of policy that is guaranteed renewable, as long as the premiums are paid, and offers premiums that cannot be increased.
- *Guaranteed Renewable Policy – type of policy that is guaranteed renewable, as long as the premiums are paid, but the premiums may increase.
Inflation Protection Rider – factors inflation into your paid benefits.
Waiver of Premium – allows for the premiums you pay to be waived while receiving benefits.
Guaranteed Future Insurability – feature that allows you to increase your benefit amount in the future as your income grows, without having to formally reapply.