Disability Insurance Articles

Waiting Periods And Disability Insurance Quotes

2011-02-09

Disability insurance quotes are items that many families don't want to look for but know that they would be better off having when necessary. Disabilities often strike quickly and without warning and can quickly exhaust the amount covered by a health insurance policy. Some of the most fundamental parts of this type of insurance are the varying lengths of waiting periods for disability insurance; that is, the time between when a policy is purchased and when a claim can actually be made. It is essential that clients and patients understand the relationship between waiting periods and insurance in order to maintain consistent coverage and not end up in a position in which they have an injury but are receiving no financial support.

Many types of insurance have waiting periods, but waiting periods for disability insurance are some of the most common in the industry. This is because the payouts associated with this type of insurance are substantial and can mean a significant loss for the company if they are paid out immediately. In order to both limit fraud and the possibility of an early loss on a policy, companies will often institute a mandatory waiting period. This waiting period will often be between six months and a year and means that even though a client is paying for insurance they will not be able to use it. Some plans will have sliding scales that allow more coverage as the waiting period goes on and some all or nothing - no claims allowed until the waiting period is over.

Initially, disability insurance quotes will be based on calculations that take into account basic disease, accident and illness statistics for the client's age and occupation group. In addition to these factors setting the price of a quote, they will also have an impact on the length of waiting period that a client will have to endure. While this can seem unfair, many state insurance commissions support the rights of companies to impose longer waiting periods on higher-risk patients. Although existing coverage cannot be revoked due to a sudden or severe illness or disability and flat-out refusal is generally disallowed, companies are able to set premiums and waiting periods largely as they see fit.

When looking for a disability insurance quote, clients would do well to be prepared for waiting periods that come along with almost any policy. These periods can range from a few months to a year and must be planned for in order to make the most of a disability insurance plan and ensure that a family is covered in the event that a disability occurs but the waiting period has not yet expired.