Top Features of a Good Disability Policy

Here are the key features of a top-notch disability policy that will protect you and your family without draining your wallet:

1. A waiting period that works for you. The waiting period is the amount of time you must be disabled before you can begin to collect benefits. Waiting periods range from 30 days to one year. The longer you can wait, the lower your premiums. For example, you can cut your premiums by about 20% if you can wait two months for your policy to kick in...90 days is even better!

2. A benefit period to age 65. The benefit period is the length of time that you'll receive benefits. You can save up to 75% with a policy with benefits to age 65 instead of lifetime coverage.

3. Re-insurability. The insurance company should not be able to cancel your policy for any reason except failure to pay the premium.

4. Waiver of premium. After a certain period of disability, say 90 days, you should be excused from paying the premium. This waiver is standard in most policies.

5. Coverage for a disability caused by accident OR illness.

6. Residual disability protection. This rider lets you receive partial benefits if you are partially disabled. Be sure your policy would pay you a percentage of your benefits based on the amount of income you have lost.

7. Coverage if you can't return to your chosen job. A good insurance policy will include this coverage at no extra cost. An "any occupation" policy means your insurance company can refuse to pay you any benefits if you're still capable of performing any job. For example, if you're a nurse, and then have an accident, your insurance company may refuse to pay you benefits because you could still get a job flipping burgers.

8. Recurrence: If the same disability recurs within a certain period of time, such as 6 months, you shouldn't have to go through a waiting period again before benefits start. As you grow older and your assets grow, your needs will change, so reassess your disability needs every few years.

Related articles:

• Disability Insurance: A Crucial Question for Your Family
• Choosing the Best Disability Insurance

Page « Previous 1 2