| If you and your loved ones depend on your
| |
| | waiting period before benefits are paid.
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| salary for support, then you probably
| |
| | In this case, your benefits would begin
|
| need long term disability income
| |
| | six months from the time of disability.
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| insurance.
| |
| | The waiting period is often called the
|
| Think about it: if you were to become
| |
| | elimination period. Choices usually range
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| disabled, even for a few months, how
| |
| | from 30 days to 720 days.
|
| would you and your family manage? Who
| |
| | Look for a waiver of premium provision.
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| would pay your bills? Disabling illness
| |
| | This means if you become disabled, you
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| or injury is one of the leading causes of
| |
| | will not have to keep paying for your
|
| bankruptcy in the United States.
| |
| | disability policy.
|
| Most people do not realize that their
| |
| | What are the conditions for renewing the
|
| chances of becoming disabled are greater
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| | policy? If you're policy is not
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| than their chances of dying prematurely.
| |
| | automatically renewable, the insurance
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| Yet they are more likely to buy life
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| | company has the right to cancel it.
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| insurance than disability insurance. For
| |
| | Payment period options are another
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| this reason, people in the insurance
| |
| | consideration. Some policies will only
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| industry call disability "the forgotten
| |
| | pay for a certain period of time,
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| risk.' According to statistics from the
| |
| | sometimes for only two years. Other
|
| Journal of the American Society of
| |
| | policies last a lifetime. The most
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| Chartered Life Underwriters, if you are
| |
| | popular policies pay benefits until you
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| age thirty to fifty-five, your chances of
| |
| | reach retirement age, when you can begin
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| becoming disabled are two to three times
| |
| | to collect Social Security payments.
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| greater than your chances of dying.
| |
| | Most policies have a residual disability
|
| If you are thirty-five years old, you
| |
| | clause. If you suffer a disability, very
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| have a 50:50 chance of experiencing a
| |
| | often you will return to work part-time
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| disability lasting last three months or
| |
| | at first. Or because you were off work
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| longer before you retire. One in seven
| |
| | for a while, it may take you time to
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| workers will become disabled for more
| |
| | build your business back to the level it
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| than five years before he or she reaches
| |
| | was before you became disabled. Your
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| age 65.
| |
| | insurance should provide income for both
|
| Many people mistakenly believe that the
| |
| | these scenarios.
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| government or Worker's Compensation will
| |
| | Check over the policy for a recurrent
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| pay them an income if they become
| |
| | disabilities benefit. A recurrent
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| disabled. Actually, more than 80% of the
| |
| | disability is one that happens after you
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| people who apply for Social Security
| |
| | recover from your original disability.
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| disability benefits are rejected. Social
| |
| | Your insurance should waive a new waiting
|
| Security does not pay benefits for
| |
| | period and/or not require proof that the
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| partial or short-term disability. Your
| |
| | two disabilities were related.
|
| disability has to either last a year or
| |
| | When you buy disability insurance, you
|
| be expected to last a year before you can
| |
| | buy it according to your income level.
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| collect Social Security. Worker's
| |
| | The more money you make, the larger the
|
| Compensation pays only if you were
| |
| | benefit of your policy. But you also have
|
| injured on the job and benefits are often
| |
| | to figure that your income will rise as
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| limited to a few years.
| |
| | you get older. For this reason you want a
|
| Your health insurance will cover your
| |
| | future increase rider or automatic
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| hospital, doctor and other medical bills,
| |
| | increase rider. These riders allow you to
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| but you will still not have a salary.
| |
| | keep your policy but increase the amount
|
| Long-term care insurance only covers
| |
| | of your benefits based on your increased
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| bills from nursing homes or assisted care
| |
| | earnings as you grow older.
|
| center. Disability insurance, however,
| |
| | When you buy your insurance, certain
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| does not pay bills. Instead the insurance
| |
| | factors will affect your price. You will
|
| company gives you money on a regular
| |
| | pay less for the insurance if you decide
|
| basis. It is designed to replace your
| |
| | to replace 50% of your income instead of
|
| salary so that you and your family will
| |
| | 80%. You also pay less if you opt for a
|
| not experience financial hardship during
| |
| | longer elimination period. The insurance
|
| any period when you are too sick or
| |
| | company factors in your current health
|
| injured to work.
| |
| | and may exclude preexisting conditions.
|
| What should you look for when you are
| |
| | Women and smokers may pay more for
|
| buying long term disability insurance?
| |
| | disability insurance because they make
|
| First, the insurance company itself
| |
| | more claims than non-smoking males. If
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| should have a top rating from Moody's,
| |
| | you are in a high-risk job, your policy
|
| A.M. Best, and Standard and Poor. These
| |
| | may cost you more.
|
| agencies rate companies in terms of
| |
| | Disability insurance policies can be
|
| capitalization, growth, earnings and
| |
| | confusing. It is always best to sit down
|
| other indicators of financial stability.
| |
| | with a professional insurance agent to
|
| Secondly, you should make sure you
| |
| | discuss the terms of the policy together
|
| understand the terms of your policy. Some
| |
| | and to ask questions until you completely
|
| policies require a waiting period before
| |
| | understand the details of the policy
|
| you start receiving benefits. For
| |
| | quotes being presented.
|
| example, your policy may have a six-month
| |
| |
|
