So what is disability income insurance ?
Disability income insurance essentially provides replacement income / monetary compensation to individuals who are unable to earn income from work as a result of an extended illness or injury.
The key to determining your disability income insurance needs is to assess exactly how much money you would need to spend during each week or each month that you would be unable to earn your normal pay. For instance, if you require 80% of your pretax earnings, but your group policy would only pay an amount equal to 60%, then you would in all likelihood require additional disability income insurance coverage.
Do also keep in mind that disability income insurance coverage varies in availability based on your occupation. Some higher-risk jobs may not be covered. whilst others may offer only limited coverage.
The way in which a disability income insurance policy defines disability can determine your eligibility to receive insurance benefits should you become disabled. Generally speaking, you want a policy with the most favorable definition of disability. Here's a quick overview of the three basic definitions of disability :
Own Occupation
The most comprehensive definition of disability. It essentially states that you're unable to perform the material and substantial duties of your own occupation. Generally speaking, the insurer will consider your occupation as the job you were performing at the time of your disability.
Income Replacement
Similar but less comprehensive. Policies with income replacement coverage define disability as sickness or injury that doesn't allow you to perform the material and substantial duties of your own occupation and typically stipulate that you're not currently engaged in any other occupation.
Gainful Occupation
The least desirable definition. These policies define disability as your inability to perform the material and substantial duties of your occupation or any other occupation that you are considered to be reasonably qualified for by way of your education, skills, or training.
Which is why it i's important to seek the assistance of a qualified insurance professional. He or she can help you assess your disability income insurance needs and find a policy that's most appropriate for you.
Your most important assets are your health and your income - PROTECT THEM. Approach the assistance of qualified insurance personnel for advise on your disability income insurance needs if you are still unsure of how to proceed.
Disability income insurance essentially provides replacement income / monetary compensation to individuals who are unable to earn income from work as a result of an extended illness or injury.
The key to determining your disability income insurance needs is to assess exactly how much money you would need to spend during each week or each month that you would be unable to earn your normal pay. For instance, if you require 80% of your pretax earnings, but your group policy would only pay an amount equal to 60%, then you would in all likelihood require additional disability income insurance coverage.
Do also keep in mind that disability income insurance coverage varies in availability based on your occupation. Some higher-risk jobs may not be covered. whilst others may offer only limited coverage.
The way in which a disability income insurance policy defines disability can determine your eligibility to receive insurance benefits should you become disabled. Generally speaking, you want a policy with the most favorable definition of disability. Here's a quick overview of the three basic definitions of disability :
Own Occupation
The most comprehensive definition of disability. It essentially states that you're unable to perform the material and substantial duties of your own occupation. Generally speaking, the insurer will consider your occupation as the job you were performing at the time of your disability.
Income Replacement
Similar but less comprehensive. Policies with income replacement coverage define disability as sickness or injury that doesn't allow you to perform the material and substantial duties of your own occupation and typically stipulate that you're not currently engaged in any other occupation.
Gainful Occupation
The least desirable definition. These policies define disability as your inability to perform the material and substantial duties of your occupation or any other occupation that you are considered to be reasonably qualified for by way of your education, skills, or training.
Which is why it i's important to seek the assistance of a qualified insurance professional. He or she can help you assess your disability income insurance needs and find a policy that's most appropriate for you.
Your most important assets are your health and your income - PROTECT THEM. Approach the assistance of qualified insurance personnel for advise on your disability income insurance needs if you are still unsure of how to proceed.
