Disability insurance is designed to provide financial protection in the event that you are unable to work due to a disability. Long-term disability (LTD) policies have a waiting period of several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life. LTD benefits can replace a portion of your income if you are unable to work due to a disability, and can help you maintain your standard of living. Disability insurance can be an important part of your financial security, and should be considered when developing your overall financial plan.
Short term disability policies have a waiting period of 0 to 14 days with a maximum benefit period of no longer than two years. The purpose of these policies is to provide income protection in the event that you are unable to work due to a covered Disability. Disability Insurance covers a portion of your lost wages while you are out of work and can be an important part of your financial safety net. There are many different types of Disability Insurance policies available, so it is important to consult with an insurance agent or broker to find the policy that best meets your needs.
Non-cancelable Disability Insurance is a policy that cannot be canceled by the insurance company, except for nonpayment of premiums. This gives you the right to renew the policy every year without an increase in the premium or a reduction in benefits. The only way that the insurer can get rid of the policy is if you stop paying premiums, and even then, they have to give you advance notice. Non-cancelable policies are more expensive than other types of disability insurance, but they offer more security. If you're looking for a policy that will give you peace of mind, non-cancelable disability insurance is the way to go.
Guaranteed Renewable Disability Insurance is a policy that cannot be canceled by the insurance company, except for nonpayment of premiums. This gives you the right to renew the policy every year without an increase in the premium or a reduction in benefits. Guaranteed Renewable Disability Insurance is a great way to make sure that you and your family are protected in the event of an accident or illness.
In addition to the traditional disability policies, there are several options you should consider when purchasing a policy:
- Additional purchase options
Your insurance company gives you the right to buy additional insurance at a later time.
- Coordination of benefits
The amount of benefits you receive from your insurance company is dependent on other benefits you receive because of your disability. Your policy specifies a target amount you will receive from all the policies combined, so this policy will make up the difference not paid by other policies.
- Cost of living adjustment (COLA)
The COLA increases your disability benefits over time based on the increased cost of living measured by the Consumer Price Index. You will pay a higher premium if you select the COLA.
- Residual or partial disability rider
This provision allows you to return to work part-time, collect part of your salary and receive a partial disability payment if you are still partially disabled.
- Return of premium
This provision requires the insurance company to refund part of your premium if no claims are made for a specific period of time declared in the policy.
- Waiver of premium provision
This clause means that you do not have to pay premiums on the policy after you’re disabled for 90 days.
Don't worry, we're here to help you through your options and make sure that the best possible coverage for YOUR needs comes at a price which works within budget!