Disability

Disbility Insurance

When Am I Considered Disabled?
• The definition of disability can vary depending on the policy you have. For example, some plans pay when you are unable to engage in your own or regular occupation while others pay when you are unable to engage in any occupation for which you are reasonably suited based on your training or experience. In addition there may also be some limitations of items not covered in the policy that be best advised best to speak to an experienced agent.
• Many disability plans require that you not be gainfully employed while you are collecting benefits.
• Some policies will pay you a portion of your monthly benefit if you have lost a part of your income due to a disability. This is usually referred to as a residual, partial or loss of earnings benefit.
• Some policies include a rehabilitation benefit that pays some or all of the cost of a course of occupational rehabilitation approved by the insurer.
• Keep in mind that many policies will not cover disabilities caused by suicide attempts, drug abuse, war, or attempts to commit a crime. Pre-existing conditions are also frequently excluded.

How Long Will Benefits Be Paid?
• In most disability income plans, you can elect the maximum time your benefits will be paid. The most frequently offered benefit periods are two years, five years and to age 65.
• You normally should plan on replacing at least 60% of your net after-tax pay and preferably 80% if you can afford the additional coverage. Small business owners have special concerns and should consider talking to an expert about overhead expense policies and other special considerations.
• To correctly determine the actual amount of coverage you would need if you became disabled, ask yourself how much monthly income would cover your living expenses. Would these expenses go up or down if you became disabled?
• These expenses must be carefully considered. Work-related expenses will go down. Medical expenses may increase. Some insurance policies may have premium waivers, or other unique features.