Even if you don’t have a disability, disability insurance is something that you should consider looking into. Statistics show that many Americans, at one point or another, will be out of work due to an injury. You may think because you work in an office, that disability insurance isn’t something you could use. However, there are many reasons that you might be unable to work, and might need a disability insurance policy. The following are five great points everyone should think about when choosing a disability insurance policy.
Eligibility
Figure out if you are eligible for a group plan. Your employer, trade organization, or another group you are involved in may have an option for you to join in on their group plan. If you decide to go this route, be sure you are aware of all the fine print in the group plan, and the restrictions as well. You will still want to see if the policy suits your needs, but it could be an economical option for you.
Amount of Coverage
Decide how much coverage you need and for what amount of time. Two phrases you should get to know are “elimination period” and “benefit period.” Elimination period refers to the amount of time a person must be disabled for before any benefits are paid out to the individual. Benefit period is the time period of the claim itself. Comparison sites like InsuranceQuotes.org are a good way to see what each plan handles including these two periods.
Type of Coverage
Decide which type of disability insurance will be best for you and your family. There are four different types of disability insurance that you can consider. Options include: traditional whole life, term life, guaranteed acceptance, and disability insurance.
Terms
Check the terms of your insurance. Make sure the policy outlines what type of insurance you are covered for — whether it’s insurance where you are only unable to perform your current occupation, or insurance that covers you if you cannot perform any job due to the disability. You will also want to know if your policy is non-cancellable or guaranteed renewable. Non-cancellable means that the terms, as well as the premiums, are a set rate that cannot be changed. Guaranteed renewable means you will have the same terms, but the insurance company could raise your premiums.
The Fine Print
Always, always take the time to read the fine print. You will want to be well versed and have plenty of information on the disability insurance policy that you decide to go with. Remember that you will likely have to own a policy for a certain amount of time before it becomes effective.
There is a lot more to disability insurance than comparing price quotes. In addition to finding the best prices when it comes to disability insurance policies, you will want to make sure that you are getting the proper coverage as well. If you keep these five points in mind as you go through the various terms, conditions and prices for a disability insurance policy, you will have an easier time deciding which policy is the right one for you at this time. You can’t predict what is going to happen to you in the future. Disability insurance allows you to rest easy at night, knowing that you and your family will be taken care of no matter what unexpected event occurs. If you are unable to perform the duties of your job, you will still be able to keep a roof over your head and food on the table.
This article was created by David Jackman, PR Coordinator, DigitalPros.