Types of Disability Insurance
By digger28 on Mar 24, 2009 in Business
There are several different types of short term and long term disability insurance and knowing the definitions and the options will be beneficial in choosing which of the many disability insurance companies will provide suitable coverage to your individual needs. Short term is defined as a period that is no longer in length than 2 years, as long term is variable within 2 years to the rest of your lifetime. Disability insurance companies can give specifics regarding the length.
There are also disability insurance policies that are guaranteed renewable which will allow you to renew with the same benefits and not be cancelled. In addition to the normal disability coverage, there are optional purchase options for more security. Things like the cost of living adjustment, residual disability and the return of premium features will be excellent additions to your disability insurance policy.
The cost of living adjustment is one way to increase your benefits as your salary would have increased according to the Consumer Price Index. The residual disability rider will allow you to return to your workplace part time while still collecting the partial salary benefit. One other good option is the return of premium that will actually refund some of your premium if no claims were filed within a certain time period.
Kipling H. | Apr 3, 2009 | Reply
All these options seem well and good - and in the long run very beneficial - however I can’t help but wonder how much such expansive coverage must cost. The sliding wages seems like a great deal, but it also concerns me that it might be too expensive to actively maintain.
Grace March | Apr 3, 2009 | Reply
It is so shocking to think you can be temporarily disabled for two years. If there are plans that offer renewable benefits, it may be wise to invest a little each month in a short term disability plan and then renew it if needed. This plan may also be the most economical.