Who needs disability insurance?
If you are dependent on your income and it would cease or decline if you were to become disabled, you are a good candidate for disability insurance.
When should I purchase disability insurance?
As soon as you can. There are several reasons not to "put it off until later." The most obvious reason is the cost of coverage will increase as you get older. If you are earning an income, you need to protect it now. Also, if you are currently in good health, you should have no difficulty qualifying for a policy. However, if your health declines or if you experience a disability, you may no longer be insurable (if you are still insurable, it will certainly be at a higher premium). How much will coverage cost? You should expect to pay between 1-4 percent of your annual income. These percentages are a rough estimate, based on selection of certain benefits and options. Our representatives will assist you in purchasing the coverage that fits both your needs and your budget
How much benefit should I have?
You should have enough coverage to maintain your current lifestyle until you are able to return to work, factoring in all other sources of income (group disability policy, investments, etc.). Most insurance companies will cover up to 50-60% of your income. All companies have a maximum amount they will cover.
When does my disability coverage begin?
Your coverage will begin after the company approves your coverage and when the insurance company receives your signed documents along with the first premium payment (upon completion of underwriting).
What options should I choose?
Residual disability provision: Under a residual disability provision (either in the policy or available by rider), an insured receives a percentage of his or her disability benefit based on the percentage of income loss the sickness or injury has caused.
Inflation protection: Individual disability income policies generally offer a cost of living rider that will adjust benefits for inflation during a long-term claim.
Future increase option: As long as your increased income qualifies for more coverage under the company's issue limits, the future increase option guarantees your right to purchase additional coverage up to a stated age without evidence of insure ability.
Each company will offer different riders, but most have the following options we typically recommend:
How do I determine the correct Elimination Period?
Individual disability insurance policies contain an elimination or "waiting period" during which no benefits are payable. Generally, you have a choice of waiting periods ranging from 30 days to one year. The longer the waiting period, the lower the cost of the plan. You should determine how long you can be without an income, based on your savings and other sources of income.
What type of medical exam is required?
The type of exam and tests required will vary by the amount of coverage requested and insurance company underwriting guidelines. We will have your insurance carrier's medical or paramedical examiner contact you and set up a convenient appointment for a physical exam. The physical exam can take place in your home or office, and is performed by a medical professional at no cost to you (the insurance company pays for the exam). The exam typically includes blood and urine specimen, blood pressure, height and weight measurements and medical history questionnaire. Test results are available to you from the insurance company upon request
How long does the underwriting process take?
All Insurance companies will have their underwriters review your application before issuing your policy. This process typically takes 3-6 weeks depending upon how fast you schedule your exam and how fast additional requests such as requests for medical records are met.