Disability

When a physical injury keeps you from working, disability insurance can help you keep the bills paid.  For this reason, disability insurance can be just as important as life insurance.

There are many kinds of disability policies containing a variety of options, but the basics are simple:

• The first variable is the amount of monthly benefit. Most disability policies have a fixed monthly benefit that does not increase with time, although you can purchase extra coverage, or riders, that offer higher payment schedules.
• The second variable is the definition of disability -- whether it is “own occ,” or the inability to perform the duties of your specific occupation, or “any occ,” the inability to perform the duties of any job for which your education and training make you qualified.
• The third variable is the waiting period, or the amount of time you must be disabled before benefits become effective.  These waiting periods can range from one week to two years, and the longer the waiting period may be, the less the disability policy will cost.
• The fourth variable is the benefit period, or how long you will receive monthly benefits once your policy begins to pay.  The benefit period can range from six months to life, depending on the policy you choose.
• In addition to these variables, there are other coverage options, as well as a variety of riders available. Among these is a rider that still pays benefits, even if you can only return to work part-time. A Social Security Offset Rider guarantees that, if you qualify for disability payments under your insurance policy but not for Social Security which is a frequent occurrence, your disability policy will also pay the benefits that you would have received under Social Security.
• Another important option is the Additional Purchase Option, which guarantees you the right to buy additional disability insurance in the future, regardless of your health at that time.

If you have any questions about Disability Insurance, or if you are not sure if you need coverage, please contact Carlisle Insurance for a needs assessment consultation.