Learn More Specific Policy Information
When purchasing a policy, there is a lot of information that you must first understand to ensure you receive the most beneficial plan. Here are some key phrases and concepts that are crucial to understand.
Disability Insurance Terms
Definition of Disability: This section of coverage in a policy defines what actually qualifies as a “disability” and allows a person to receive benefits.
Premium: the amount a policyholder pays to keep his/her plan active. Payments are usually made monthly, quarterly, bi-annually, or annually.
Elimination Period: Also known as the Waiting Period, this is how long after being disabled that an individual must wait to receive benefits. Typical elimination periods are in 30-day increments, although 3-month/90-day is the most common. A longer elimination period may reduce premiums and the person does not need to pay premiums during this time.
Benefit Period: The amount of time that a policy pays out for a disability, after which, the benefits will end. Common choices are 1, 2, 5, or 10 years, along with payments until age 65.
Non-Cancellable & Guaranteed Renewable: These two measures ensure the outline of your contract remains unchanged until you reach age 65. The insurance provider cannot change your premiums, benefits, or any other portion of the contract as long as you continue to pay your premiums on time.
Optional Policy Riders: These are additional features that can be included in a coverage plan that account for inflation, extra expenses, and other uncovered items. Check out our Disability Insurance Glossary for a full list of riders.
Occupation: An individual’s occupation will help determine their policy due to industry standards like projected income and risk of danger. In general, higher paying jobs with less risk have a preferred occupation class, which helps establish premiums, benefits, and optional riders.
For additional information, contact us to speak to a representative.