Disability Income Insurance Benefits Checklist
The value is in the language.
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When you purchase Disability Income insurance, you are contracting with the insurance company to pay you a stream of income in the event you become disabled and are unable to work. What makes policies different is the wording of the definitions for the various benefit provisions in the policies. The highest quality policies have language that very concisely affords you the greatest level of protection. As you evaluate disability income policy features and benefits, remember that the choices you make will impact the premiums you pay and the benefits you are entitled to receive.
Common benefit provisions include: 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. |
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Benefit Period
For how long will benefits be paid? Common benefit periods are one year, two years, five years and to age 65.
Definition of Total Disability
What definition of total disability must be met for benefits to be payable? The definition of 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. This is an important policy provision to evaluate.
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 Optional Benefits to Consider
For how long will benefits be paid? Common benefit periods are one year, two years, five years and to age 65.
Definition of Total Disability
What definition of total disability must be met for benefits to be payable? The definition of 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. This is an important policy provision to evaluate.
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 Optional Benefits to Consider
- Additional Purchase Option: Right to purchase additional disability income protection in the future without evidence of insurability.
- Social Security Rider: Coordinates 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.