Disability Policy Primary Features
Waiting Period: # of days you must be disabled before benefits begin.
Benefit Period: length of time the policy will pay benefits to you. Benefit Periods can be 6 months, 12 months, 2 years, 5 years, or to SSNRA (social security normal retirement age).
Definition of Disability: your policy states what conditions determine if you are disabled.
*Own Occupation: the policy deems you disabled if you cannot perform the substantial duties of your regular occupation. This is more desirable especially for specialized occupations.
*Any Occupation: the policy deems you disabled if you cannot perform duties of any occupation you are reasonably qualified to perform.
Guaranteed Renewable policies do not allow the insurance company to cancel your coverage but do allow the company to increase premium rates in the future.
Non Cancellable policies do not allow the insurance company to cancel your coverage or increase rates at any time in the future.
Short Term Disability
Short term plans typically have a 7, 14, or 30 day waiting period and a 6 month or 1 year benefit period and will cover you for an accident or sickness.
This coverage will maintain your ability to make payments for expenses like your mortgage or rent, car payment, utilities, groceries, and other regular monthly costs.
Long Term Disability
Most people could not survive financially without a paycheck. Disability coverage will give you the piece of mind that your primary expenses are covered no matter what happens with your health.
Long Term Disability plans typically have a 90, 180, or 365 day waiting period and a 5 year, to age 65, or to SSNRA benefit period.
The definition of disability is one of the most important aspects of your disability policy. You will want to make sure you carefully read the wording of any illustrations and quotes you receive.
Most long term policies offer Partial or Residual disability benefits which pay you a percentage of your income if you are partially disabled and unable to work full time.
Certain disability policies offer a Return of Premium benefit that pays refunds all premiums paid if you do not become disabled. The return of premium is tax free in most cases.
There are a variety of riders you can add to your policy such as a guarantee to purchase add’l disability Coverage in the future, continued contributions to a 401k or retirement plan, plus many others.
We can help you tailor a disability policy or policies to fit your budget and protect your income.