Disability Insurance Articles
Understanding The Limits Of Your Disability Insurance Policy
2010-12-09
Statistics show that one out of every ten people will become disabled before reaching the age of 65. With these kinds of numbers, it is no surprise that more people are investing in a disability insurance policy. When picking up this type of policy, it is important to understand the disability insurance limits that come with this type of coverage because of the out of pocket expenses that might be associated with it.
A typical disability insurance policy excludes certain causes of disability. These disability insurance limits are stated in the written policy. An exclusion that is recognized universally is the pre-existing condition. This is a type of ailment or sickness or injury that manifested prior to the disability insurance policy purchase. Some policies have a look back provision where there is a time limit on what is considered to be a pre-existing condition. A typical look back period is 90 days to six months, but it is also important to note that not every insurance company honors this sort of clause. Other insurance providers might also add on a waiting period to this sort of clause. Individual policy varies according to individual procedure and industry mandates.
Some other disability insurance limits are handicaps that occur from acts of war or things that occur while doing something illegal or operating unlawfully. Oftentimes, self inflicted injuries that result in disability are also excluded. Many put disability insurance limits on those who get injured on the job also, because generally there are other forms of protection available through state benefits.
Another example of disability insurance limits is the amount of time a benefit period will be honored. For situations where it is a mental or nervous disorder that is causing the disability insurance policy to be in effect there is typically a time limit. Most plans limit the benefit period and pay claims for a maximum time of 24 months. This is a recognized time limit across the insurance industry for these types of disability.
Disability insurance limits to 12 or 24 months the benefit period for claims that are solely due to subjective symptoms. Subjective symptoms are those that are recognized as fatigue or pain or soft tissue damage. This limit does not generally apply to a disability insurance policy if there is an underlying cause for the symptoms.
It is important to understand the limitations of a disability insurance policy. Disability insurance limits can be best understood by reading the individual policy. There is an industry wide mandate kept on limits, but each company has a right to their own procedures and policies. The rights and responsibilities of all parties should be listed in the individual policy.