Disability 101

EVALUATING DISABILITY INCOME INSURANCE – QUESTIONS TO ASK

Benefit Amount:  What is the monthly disability income benefit?

Waiting Period:  For how long must you be disabled before the benefit begins? Common waiting periods are 60, 90, 180, 365, or 730 consecutive days of disability.

Benefit Period:  For how long will benefits be paid?  Common benefit periods are one year, two years, five years, and to age 65.

Total Disability:  Total disability can range from the inability to perform your own occupation to the inability to work in any reasonable occupation based on your education, training, and experience.

Partial Disability Benefit:  Will the policy provide benefits for partial disability following a period of total disability?  If so, how much and for how long?  What requirements must be met?

Rehabilitation Benefits:  Does the policy pay any of the expenses of a rehabilitation program during a period of disability?

Waiver of Premium:  Will policy premiums be waived during a disability?

Renewability:  Is the policy guaranteed renewable?  Under what conditions can premiums be increased?

Other Benefits to Consider:

• Additional Purchase Option:  Right to purchase additional disability income protection without evidence of insurability.
• Social Security Rider:  Coordinated with an expected Social Security disability benefit.
• Cost of Living Rider:  In the event of disability, increases the disability benefit each year to compensate for increases in the cost of living.