Disability Insurance Made Easy
What It Is
Disability Insurance (DI) is a contract between you and the insurance company.
The company guarantees that it will pay you a specific amount of money should you become disabled. And you promise to pay a specific amount of money (premiums) to the insurance company as your part of the contract. Once the contract is signed, the insurance company can’t alter the contract but you can, simply by choosing not to pay any more premiums.
Definition of Occupation
A DI contract can be designed to cover your specific occupation should you become disabled. In this case, if you can’t perform your specific occupational duties due to a disability, then the insurance company will continue to pay the guaranteed benefits even if you can find other work or employment that doesn’t pertain to your specific occupation as defined in the contract.
Some DI is for short term, 2 to 5 years. Other DI is for long term, or life time, coverage.
DI insurance contracts also have elimination periods.The elimination period is how long of a time period must pass before your benefits from the insurance company begin after you have been diagnosed with a disability. Common elimination periods are 30 days, 60 days, 90 days, 180 days and 365 days. Premiums are typically higher for shorter eliminations periods.
Group vs. Individual coverage
Some DI insurance policies are issued to groups of people. If you are part of a hospital, association, university, fraternity, society or union, they may provide a generic DI policy as part of your benefits package. These group policies are nice, but they most likely don’t provide the total coverage that you would need should you become disabled. Therefore, it is important to have your coverage analyzed by an agent that is properly vetted and approved to review DI contracts. You simply can’t risk not having the DI that you need based on your skills and education acquired for your profession.
Information Needed for a Quote or Application
Your name, age, gender, date of birth, medical history (including any use of tobacco/nicotine/marijuana in the past 12 months) as well as information about your income will be required to apply for DI coverage.
Other than that, DI underwriting is as straightforward as it comes. Based on your specialty and your occupational duties a quote can usually be provided within 24 hours.