Continuing from my last post, Your Disability Insurance Policy How will it Perform?, Here are additional questions you should have answers for before you decide on a disability policy:
- How long will benefits be payable?
The policys benefit period establishes the maximum length of time your policy will pay benefits. Typical benefit periods are 2, 5 and 10 years, to age 65 and to age 67. A few companies offer the option to extend benefits for life should you remain continuously disabled.
- Could my policy be changed or cancelled; can my premium be increased? A disability insurance policys renewability provisions are among the most critical, in that they define your rights for keeping your coverage in force. The best policies are both non-cancellable and guaranteed renewable, which means that if your premiums are paid on time, your policy cannot be cancelled, premiums cannot be increased and policy provisions cannot be changed. Policies that are only guaranteed renewable cannot be cancelled (as long as premiums are paid on time), but premiums can be increased.
- Will my benefits keep pace with inflation?
Most companies offer Cost of Living Adjustment (COLA) riders, which adjust the benefit when you are disabled on an annual basis, either at a fixed percentage or tied to a standard consumer price index. Look for COLA riders that are compounded, rather than fixed.
Use the information in this and the last post to help select the right disability insurance policy for your needs. If you would like disability insurance quotes from several companies with a comparison of benefits that compare the benefits outlined here, complete our online quote request form (click Get Started above) or feel free to call our disability insurance specialists at 866-691-0100 ext.105.
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