home :: disability insurance

Purchasing Disability Insurance - What You Need to Know!

You have decided that it's in your best interest to purchase disability insurance. What is your next, and probably most important, step? This crucial action consists of taking the time to educate yourself on the various types of insurance available and the scope of disabilities covered within.

Of course, the biggest benefit of purchasing this type of insurance is the guaranteed income you will receive, in the event you become disabled, due to illness or injury.

There are, actually, two basic types of disability insurance coverage. It is up to you to decide which policy is best for you. Many carriers offer cost of living options and allow you to customize your policy, as well. Other customizable options include: length of eligibility term, guaranteed premiums, partial disability option, tax benefit option and total settlement amount.

The first type of insurance will cover you when you can't work at all. It is what you should consider purchasing, if you are on a limited budget, as premiums are usually lower. It is probably the most common type of coverage.

The second type of insurance covers you when you can no longer perform your regular job. The premiums are more expensive, but the settlement you receive is, for the most part, larger. Many individuals who choose this coverage are, then, able to start an alternative business, which easily accommodates their illness or injury.

When shopping for, either, long or short-term disability insurance, it is important to verify provider information such as non-payment and policy "portability" terms. These issues may seem somewhat trivial but can be the cause of policy cancellation, if not fully understood, at the time of purchase.

It is imperative that you disclose prior medical conditions before purchasing a policy. If these conditions are discovered, in the event of filing a claim, the policy will be revoked and you will not receive a premium refund.