DISABILITY INSURANCE

Items to consider

DISABILITY INSURANCE

Items to consider

Non-cancelable/guaranteed renewable - This means the company cannot cancel your policy, increase your premium, or change policy provisions if you keep paying premiums due for the life of the policy.


Definition of disability - "Own Occupation" definition. With an own occupation definition of disability, you will be considered totally disabled if, solely due to injury or sickness, you cannot perform the material and substantial duties of your occupation, even if you are gainfully employed in another occupation.


Companies to consider offering own-occupation definitions of disability: Guardian, Standard, MassMutual, Principal, Ameritas, and Ohio National.


Elimination period - This is the amount of time you have to wait until disability benefits are paid out.


Future increase option -  This allows you to increase your monthly benefit in the future without having to go through medical underwriting.


Benefit update option - Similar to the Future Increase Option, this allows you to increase your monthly benefit in the future without having to go through medical underwriting.


Cost of living adjustment - This increases your monthly benefit once you start receiving benefits. The purpose of this is so that your benefit keeps up with the general increase in the price of things (i.e., inflation).


Benefit to age - This is the age at which benefits will stop. This is typically 65 or 67.


Partial disability - Without this add-on, the disability policy is an "all or nothing" deal. Sometimes a disability doesn't totally prevent you from working but does cause a drop in income. That is where the partial disability add-on comes in. It sets a threshold for your income to drop, and then it will pay out benefits proportionately based on your drop in income.


Mental/nervous limitation - Some policies limit benefits paid if the disability stems from mental, nervous, and substance abuse disorders.

© 2017-2025 Collaborative Advice. Advice offered through Collaborative Advice, a state Registered Investment Advisor.

© 2017-2025 Collaborative Advice. Advice offered through Collaborative Advice, a state Registered Investment Advisor.

© 2017-2025 Collaborative Advice. Advice offered through Collaborative Advice, a state Registered Investment Advisor.