Disability income insurance is not intended to fully replace your income. Rather, the benefit should be sufficient to financially sustain you during your disability. The two major types are: Short-TermShort-term disability benefit payments are usually based on a specified percentage of pre-disability income (e.g., 60%). The length of time benefits are paid varies from policy to policy, but the maximum benefit period is usually less than six months. Short-term disability coverage may be used to fill in the elimination period before long-term disability benefits begin. Long-TermBenefits may continue anywhere from five years to the remainder of an individual’s life, depending on what is purchased. Long-term disability insurance is generally considered protection against a catastrophic illness or injury, but many long-term disability claims result from common medical conditions that cause an increasing level of impairment over time. It is important when purchasing coverage to check a policy’s maximum benefit period. The following policy provisions will impact the disability benefits you receive:
Many Disability Income Policies Offer Supplemental or Optional Benefits
Some Disability Income Insurance Policies Exclude Coverage Under Certain Conditions
A pre-existing condition is a health condition you already have when you buy a policy. Any condition, whether or not revealed on the application, for which symptoms existed prior to the effective date of coverage, causing an ordinarily prudent person to seek diagnosis, care or treatment, or one in which medical advice or treatment was recommended by or received from a physician may also be considered a pre-existing condition. Make sure you understand the definition of pre-existing condition and how long such conditions will not be covered. Read the limitation and exclusion provisions of your policy very carefully. When an individual who is insured under a disability income insurance policy Cannot perform?Disability Ins. When an illness or injury prevents an insured person from performing one or more of the functions?A disability from an illness or injury that prevents an insured person from performing one or more of the functions of is or her regular job. This is sometimes referred to as partial disability. SSA, Administers SSDI and SSI programs for disabled persons.
What is an individual disability policy?Individual Disability Insurance is designed to support the needs of executives and professionals with high salaries or uninsured earnings. However, anyone with a gap in coverage due to Long Term Disability benefit maximums or uninsured earnings may be eligible for IDI coverage.
What are the benefits of an individual disability income policy?Disability income insurance helps protect people from financial losses if an accident or illness renders them incapable of working and receiving regular income. DI insurance is available through employers, Social Security, or insurance companies and comes in short-term and long-term disability coverage.
|