There are many disability insurance policies on the market. The most important question, however, is what is important to you?
Some policies are fully comprehensive in their coverage. Naturally they cost more than others that only cover a few conditions.
Just like anything else, you usually get what you pay for! The better or more comprehensive the policy, the more control you have of the policy. Is control important to you?
To determine what kind of policy is right for you, discuss the following with a knowledgeable disability broker:
- Do you want coverage for ANY disability, no matter what the cause? Did you know that over 40% of the claims are for other than accidents and illness? Perhaps with the policy you have now, you are only potentially covered for a 60% chance of all disability.
- What is more important? A 2 year benefit period with Return of Premium OR Coverage to age 65 with NO Return of Premium?
- Is it acceptable to raise your premium when the company wants or do you want Guaranteed Premiums for the life of the policy?
- Is it acceptable to you, for the the insurance company to cease your benefits if you can qualify for ANY other type of job?
- Is it acceptable to you, for the insurance company, to cancel your coverage if you change jobs to a more hazardous occupation?
- Early onset Alzheimers usually starts before age 65. What does your policy say about this extreme disability?
- All too often we hear about a couple’s child being abducted with heart wrenching results. What effect do you think this has on the parents? Could they potentially become disabled as a result? How?
- What is the policy definition of disability? What does it mean? Why is it important?
- Once disabled, does your monthly benefit rise with inflation each year? If it doesn’t, you will have less buying power each year!
- Does your policy guarantee that you can buy more coverage, in the future, even if your health changes for the worse?
- Are you aware that most employee group LTD benefit plans can be terminated after two years of payments? What then?
- Does your company underwrite at the time of application or the time of claim?
- Have you ever cancelled a policy because you were told the new one is much better and much cheaper?
- How often is something much better AND much cheaper? Ask the broker to confirm this in writing and sign it! Better still speak to another broker who sells non-cancelable disability insurance and ask them to do a comparison for you.
- Does your policy have limited benefit periods …. on and for specific injuries?
- Disability insurance is the insuring of income. Becoming disabled is what triggers the policy to pay out. The benefit amount is based on your income. Generally, only income shown on your tax return (T1 Return) each year is accepted by insurance companies; with one exception: Edge Benefits that will use Gross Income figures in certain cases. (Have your previous two years returns available for your broker when you discuss this with them. If you are reporting $12,000 or less let them know immediately.)
If you are taking any kind of stress or anti-depressant medication, let your broker know immediately.
It is very important that you are able to answer these questions completely and accurately in order for you to make a critical decision on just what type of disability policy is right for you.
When you’re ready to move on purchasing Disability Insurance, please consider Ken MacCoy, CHS for a NO Obligation review.