Disability coverage is important to have. There are multiple types of disability insurance policies available to choose from. However, the basic parts of insurance are fairly simple. The first aspect is the monthly benefit amount. The majority of disability policies feature a fixed monthly payment that doesn’t increase over time. Individuals may obtain riders that have payment schedules with higher amounts. The second aspect involves the definition of disability. This definition is usually based on whether a person is unable perform the duties of any occupation or just the specific occupation for which they were trained for and were most recently involved in. The waiting period is the third aspect. This is the amount of time that a person must be considered as disabled before the insurance benefits start. Waiting periods may last as little as one week or as long as two years. In some cases, they may be slightly longer. Longer waiting periods come with lower policy costs. The fourth aspect is the benefit period. This is the length of time a person will receive monthly disability payments following the start of the policy. Benefit periods may last as little as six months or as long as a person lives. The duration depends on what individuals choose and what offerings are extended by the insurance company.
There are other coverage choices and riders available. The most crucial rider to have is one that pays even if an individual returns to work part time. The additional purchase option allows policyholders to buy additional disability coverage in the future. The Social Security offset rider is also beneficial. Check with an employer before purchasing coverage. Many employers offer affordable coverage with good benefits. This is because their coverage comes from a group plan, which is less expensive than individual coverage. Employers pick up a portion or the entirety of the disability premium. Consider private insurance if an employer’s coverage doesn’t offer at least 60 percent of income, has a waiting period exceeding the amount of time savings will last or does not pay benefits until age 65. Although individual policies are expensive, they’re more beneficial to have than go without. There are several important considerations in addition to those listed here. However, each person’s situation varies, so it’s best to speak with a qualified agent about what options are available and which ones are the best choices for an individual situation.