What if you became injured or sick and couldn’t work? Could your family survive without your income? We can help.
What You Should Know
Disability insurance helps replace income in the event you get sick or injured and can’t work for an extended period of time. There are many different types of disability policies. So, it’s important to buy a policy that is right for your profession and income level. If your work is specialized you’ll want a policy that covers your ability to perform the specific functions of that occupation for which you studied, worked and invested your life. Similarly, if you are only able to return to work on a limited basis, you’ll want a policy that will pay you a partial, or residual benefit until you’re able to return full time. We work with the top Disability Insurance Carriers in the industry so we can make sure you have a policy that works for you.
Types of Coverage
Disability Insurance Coverage & Options
Own Occupation Disability
An own occupation disability insurance policy defines a disability as an inability to work at your regular occupation. These policies are more desirable due to the ability to receive a benefit when you are simply unable to perform the tasks associated with your specific job. An example would be the surgeon who broke his hand so badly he could no longer hold a scalpel, or a comedian who lost his sense of humor.
Partial disability is when you have an injury or illness that, while you are still able to work at a limited capacity, you are forced to reduce your responsibilities and/or pay. You must also be under the care of a doctor for the condition in question. Partial disability benefits may be paid whether you have own-occupation policy or the any-occupation policy. Insurers use a special formula to determine what percentage of benefits you’re eligible to receive in relation to how disabled you are and the percentage of lost income.
Any Occupation Disability
Any occupation disability insurance only provides benefits if you are unable to work at any job that you’re reasonably suited for due to illness or injury. This is much harder to prove and makes it harder to receive a benefit. This type of policy is generally less expensive than the types of own occupation disability insurance.
Presumptive disability is defined as disability resulting from an injury or illness so debilitating that the insurance company considers your disability permanent. Since there is no possibility of recovery, the disability insurance company will pay you benefits whether you have an own-occupation policy or an any-occupation policy.
You are considered totally disabled when you are unable to continue working in your current or most recent occupation, or you’re receiving care from your doctor with the hope that you’ll recover from the injury or illness that caused your disability. Your eligibility to receive disability benefits under the total disability provision is determined on which definition of disability your policy has (i.e. own-occupation or any-occupation policy). Unless you have an own-occupation policy, the insurance company will define your occupation as any job for which you are “reasonably suited by means of education, training or experience.”
There are a number of optional riders from which to choose to enhance your disability insurance policy. These include but are not limited to the following:
- Waiver of Premium – Policy premiums are waived while you are disabled
- Automatic Increase Benefit – Optional Periodic Benefit increases available with no additional underwriting
- Long Term Care Rider – Pays for long term care at home or in a long term care facility
From The Blog
Disability Insurance Resources & Articles
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