| People often make the mistake of shopping for | | | | education, training, or experience. This |
| an individual disability insurance policy the | | | | means the insurance company could say that |
| same way they would for a term life, or car | | | | while you can not work in your current |
| insurance policy. The concept seems simply | | | | occupation they believe you could do |
| enough, "If I get disabled, the insurance | | | | something else, and therefore not pay your |
| company should pay me." Therefore many | | | | benefits. As you can see, the three |
| shoppers spend time comparing quotes from | | | | definitions are very different, and depending |
| different disability insurance carriers, and | | | | on your income and occupation, the price |
| trying to find the lowest price. The internet | | | | could be different as a result. |
| makes this task even easier when a shopper | | | | |
| can simply search for disability insurance on | | | | Residual or Partial Benefits |
| Google, and request free quotes from the top | | | | |
| ten search results. | | | | There are so many variations to residual or |
| | | | partial benefits that I could not possibly |
| According to statistics, 66% of the people | | | | cover them all in this article. If you take |
| who buy a disability insurance policy in this | | | | anything away from this article, make sure |
| way will never have a problem because 66% of | | | | you understand when and how the residual or |
| you will never become disabled for 90 days or | | | | partial disability benefits pay in your |
| longer before they retire. However, 33% of | | | | individual disability insurance policy. There |
| you will become disabled before you reach the | | | | are policies out there that allow |
| age of 65, and therefore will need to | | | | professionals an unlimited recovery benefit |
| understand how the individual disability | | | | as part of their residual benefits. This |
| insurance policy you purchased on-line will | | | | means that any fee for service professional |
| work. Buyer beware, not all disability | | | | would be paid under their residual disability |
| insurance policies work the same way. In | | | | rider for the entire benefit period until |
| fact, no two policies are the same at all. | | | | they financially recovered, not just until |
| | | | they physically recovered. There are also |
| Definition of Total Disability | | | | policies that just pay a straight forward |
| | | | percentage of the monthly benefit depending |
| The first thing you need to compare is the | | | | on your percentage loss of income, and |
| definition of total disability. This will | | | | policies that pay a limited partial benefit. |
| dictate exactly what the insurance company | | | | The scope of benefits is extremely large, so |
| will pay out a total disability claim for. | | | | make sure you understand the differences |
| While many carriers have slight variations on | | | | before selecting a policy on your own. |
| this definition, there are essentially three | | | | |
| major definitions in use in the market today. | | | | Inflation Protection |
| The most comprehensive is a Pure | | | | |
| Own-Occupation definition of total | | | | My feelings on inflation protection are |
| disability. This definition will result in | | | | mixed. It is something you always want to |
| you being paid the total monthly benefit if a | | | | have if you are on an extended long term |
| sickness or injury prevents you from being | | | | disability insurance claim, however if you |
| able to perform the material and substantial | | | | only have a short term claim it is not going |
| duties of your regular occupation, even if | | | | to help you. If you are younger, I recommend |
| you are engaged in some other capacity. The | | | | purchasing this option every time because |
| middle definition is a modified | | | | there is a longer period of time that |
| own-occupation or income replacement | | | | inflation could affect your benefit amount |
| definition. The definition will begin the | | | | while on claim. If you are older, feel free |
| same way as a pure own-occupation definition | | | | to make your own decision. You can always buy |
| does, except for the last sentence which will | | | | it now, and drop it later on in life when |
| say so long as you are not engaged in any | | | | inflation is not much of a threat to you. |
| other occupation. This means the policy will | | | | |
| pay you so long as you are not earning any | | | | I hope some of these tips help you make an |
| earned income while on a claim. The third | | | | educated decision when purchasing your own |
| major, and least comprehensive, is the | | | | individual disability insurance policy. It is |
| gainful occupation definition which starts | | | | not a contract where browsing by price will |
| the same way as the previous two, however | | | | give you the best deal, it will only mean you |
| adds the language are unable to perform any | | | | bought the cheapest disability insurance |
| occupation for which you are qualified by | | | | policy out there. |