Disability Insurance Articles
3 Signs Of A Bad Disability Insurance Quote
2010-08-12
When gathering disability insurance quotes in preparation for obtaining disability coverage, it is critical to know what to look for that can identify a quality policy. With the advent of online insurance quote generation, it is more important than ever to understand the basics of what disability insurance provides in order to identify bad disability insurance quotes and avoid them. Disability coverage is intended to provide for the insured's financial income needs in the event that a long term injury or serious illness interferes with the ability to maintain gainful employment. When seeking disability insurance quotes, understanding the level of benefits and coverage provided, how disability is assessed, and when coverage is provided are factors in weeding out the good disability insurance quotes from the bad.
The first thing to understand about disability insurance coverage that can help to separate out the bad from good quotes is that disability coverage it is not generally intended as a total replacement for lost income due to serious illness or disability. The industry standard that most providers will likely pay is 70 percent of lost income, and the average amount may be closer to half of the income level that is lost. Having accurate expectations can eliminate "too good to be true" situations. If the payout sounds high, it is a good idea to investigate the quote further and shop around for more disability insurance quotes to serve as a comparison.
The second red flag that the provider may be offering a bad disability insurance quote is found when encountering quotes that have no waiting or elimination period. Similarly, be careful with quotes that offer unusually low premiums for "own occupation" policies, whereby benefits are paid out upon a determination that the employment duties in the insured's primary occupation cannot be completed, versus "any occupation" policies, whereby benefits are only paid upon a determination of total disability, or an inability to work at any occupation at all. Further research into comparison quotes will again yield certain industry standards that will flag bad disability insurance quotes before any damage is done.
Finally, a third red flag of a bad disability insurance quote comes when policies are unclear about when coverage may be canceled or revoked. Carefully checking renewal terms will yield this information. Quality quotes will include an automatic renewal clause which states that the insurer cannot cancel the disability policy at any time as long as premiums are paid on time and in full. Disability insurance is purchased for a time of emergency. A little extra research up front will have huge dividends in the event that the coverage is needed.