A: The odds are one in four that a 35 year old man (higher for women) will miss work more than 90 consecutive days due to an injury/sickness. Many disabilities will last 5 years, others lifetime.
Q: What happens to my premiums if I never collect from the policy?
A: The carrier has earned the premium for the risk; however, there are policies that provide an optional benefit, that refunds all premium (less claims paid).
A: You may not be insurable later when you need/want the coverage.
A: Premiums (Costs) increase as you get older. Note: once a policy is issued, costs remain level to 65.
A: Disability (injury or sickness) can strike anytime and without warning.
A: Normally coverage should be provided for those overhead items such as rent, food, other insurance and the like. Lifestyle and other sources of income are factors. Don’t count on social security, or plans offered by your employer.
Q: What options should I consider?
A: Depending on your occupation and whether you are self employed or not, the following options are available: COLA, Residual, Future Increase Option, and others. (Refer to Ideal Policy Article for an explanation of these options)
Q: What happens if I can’t do the duties of my occupation, but can work elsewhere?
A: Policies that provide an own-occupation definition for the definition of total disability will pay regardless. There are other definitions and these vary by carrier and occupation.
Q: What elimination period, benefit period should I consider?
A: The elimination period (like any other deductible) affects cost. Take one whereby you can be self-insured for the longest period of time. The longer the elimination period, the lower the cost. Note:The benefit period should normally be the longest available.
Q: Can premiums be increased?
A: Not if you have a “non-can” policy. Those that aren’t non-can are less expensive.
Q: Can a carrier refuse to renew my coverage?
A: No (not if you have a guaranteed renewable policy).
A: Probably, since many group plans are taxable (employer paid) and because of caps, highly compensated executives face reverse discrimination and will be under-insured!
Q: How much will coverage cost?
A: For women, normally, 2-4% of income and for males 2-3% of income. These percentages are approximate and could be much lower depending on options and benefit period. Coverage can also be based on a specified amount that you want to spend.
Q: Are there limits as to how much coverage I can have?
A: Normally 50-60% of your salary can be covered. The higher the income after $100k the lower the percentage. Self-employed people must use net income as the base line.
Q: How do I apply and what do I have to provide or do?
A: Contact your agent or a company that exclusively specializes in disability insurance. Normally an exam will have to be provided as well as financial documentation.
A: With our experience going back to 1972 and the fact that we specialize demonstrates that we can satisfy all of your concerns regardless of your circumstances.
Q: What if I’ve already been turned down?
A: DIRC have carriers that provide coverage for those who may believe they are uninsurable.
For a more detailed explanation (answers) to your questions, visit How to Select the Ideal Disability Insurance Policy or request a quote for a prompt, no obligation response.