Disability Insurance Articles
How One Disability Insurance Quote Will Differ From Another
2010-12-03
Disability insurance provides benefits when you become disabled and unable to work. Getting the right disability insurance is easy when you know how to evaluate each disability insurance quote.
Guaranteed premiums ensure that the insurance company cannot raise your rates. A guaranteed renewal provision means that the policy can be renewed without the policyholder having to provide evidence of insurability. It does not guarantee that the rates won't go up. In fact rates do go up because the policyholder is older than they were at the time the policy was initiated. Benefit limits tell you how long the coverage will last if you become disabled. Common benefit periods are 2 to 5 years, to age 65 or lifetime benefits. A policy with lifetime benefits is the most comprehensive plan but many choose a policy that covers them to age 65, the age of retirement.
Insurance companies may have different definitions of disability. A disability can be temporary, partial, or permanent. A residual disability is defined differently depending on the way the policy is written. The "Time and Duties" definition pays your disability benefits only until you return to work with no regard to your earnings. An "Income" definition means that even if you return to work your benefits will continue until you are earning 80 percent of your pre-disability earnings. If you have a profession such as an accountant, physician or attorney it might take many years to return to your normal income level. Understanding the circumstances under which you can claim disability benefits will help you to choose the right disability insurance quote.
Some disability policies define disability under a term called "own occupation" This means that you are considered disabled if you cannot perform your own particular job. Other insurers consider you disabled if you cannot work in "any gainful employment." A policy that has the less limited definition of disability will make it more likely that you will be able to claim the maximum benefits. Disability insurance policies can differ in the way the coordinate benefits with other insurance or benefits that you can receive. If you become eligible for social security, some disability policies will reduce your benefits in proportion to the social security benefits you are receiving.
A disability insurance policy is backed by an insurance company. You want to buy a policy from an insurer that you can trust. You can check the history and ratings of an insurance company before you decide to apply for coverage. Compare each quote to be sure that the benefits and policy provisions are included fit into your financial plan. Often more comprehensive benefits are not much more expensive.