| Definition of disability |
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| It's important to know if you're protected
in your occupation or if you're simply unable
to work at any job. The more specific
the policy, the higher the cost. |
| |
| Coverage if you
go back to work part-time |
| |
| Many disability policies offer partial benefits
when you go back to work but are not healthy
enough to work full-time. This is commonly
referred to as Residual Benefits. |
| |
| A guaranteed renewable,
non-cancelable policy |
| |
| This means the insurance company can't raise
your premium or cancel your disability insurance
as long as you pay your premiums. |
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| Length of time
you receive benefits |
| |
| Benefits for a long term disability
insurance policy generally start after a 90
day waiting period and offer either 2- or 5-year
benefit periods in addition to coverage to
age 65 or life. |
| |
| Inflation protection |
| |
| This means your disability
benefits may be increased to keep pace with
inflation after a disability begins. This
is commonly referred to as COLA (Cost Of Living
Adjustment). The amount of yearly
increase is defined in the policy and is
usually tied to the Consumer Price Index. |
| |
| Guaranteed future
insurability |
| |
| This means you can increase
your disability income insurance monthly benefit
as your salary increases without providing
medical insurability. This is commonly referred
to as FIO (Future Increase Option). |
| |
| Premium waiver
after disability |
| |
| This assures that if you become
disabled, your premiums will automatically
be waived until you're no longer disabled. |
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