Important Policy Features
The following list provides important features to look for in a quality disability policy. Every company has different policy language, however this list is meant to provide a brief explanation of key features that medical professionals look for in a comprehensive policy. For specific definitions please review your disability proposals or contact us for assistance.
- Noncancelable – policy cannot be cancelled as long as premiums are paid, and premiums are guaranteed not to increase.
- Guaranteed Renewable – policy cannot be cancelled as long as premiums are paid. However, premiums can be raised for an entire class of policy owners.
- Total Disability – disability payments are made if you are unable to perform the duties of your own occupation.
- Partial/Residual Disability – if unable to perform some aspects of your job, residual benefits allow partial disability payments based on the amount of your loss of income.
- Benefit Amount – policies usually pay between 40% to 70% of your pre-disability earnings.
- Benefit Period – policy benefits may run from one to 10 years, or age 65/67.
- Elimination/Waiting Period – typical waiting periods last for 30, 60, 90, 180 or 365 days after a disability occurs.
- Automatic Increase Benefit – increases benefits by a specified percentage usually during the first few years of coverage.
- Cost of Living – increases benefits by a specified percentage (usually based on the Consumer Price Index [CPI]) after each year of disability.
- Future Purchase/Insurability – the ability to increase your monthly benefit without the requirement of medical underwriting.
