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