How It Works
Many people understand the importance of a life insurance policy, but did you know that during your working years the probability of suffering a disability is higher than the probability of dying? Studies show that a 20-year-old worker has a 1-in-4 chance of becoming disabled before reaching full retirement age.DIS-179-DIS Disability protection provides you with guaranteedDIS-96-DIS long-term income that can help with mortgage payments, car payments and household expenses, should you be faced with a disability that prevents you from working.
Things to Consider
If you're thinking about buying disability income insurance, there are a few factors that should be considered regarding policy type and how a policy is priced. Our insurance specialists can walk you through these considerations in more detail.
Your disability income policy will have a waiting period, which is a period of time that must elapse after a disability occurs, but before benefits begin. You can purchase policies with different waiting periods. Typically, the longer the waiting period, the less expensive the policy.
Type of Disability
Some policies will cover you for partial disability, others only for total disability. The definition of disability will vary from policy to policy. You must meet the definition of disability as it is set forth in your contract to be eligible to collect benefits.
You can purchase either occupational or non-occupational coverage:
- Occupational policies cover work-related and non-work-related injuries or illnesses
- Non-occupational policies cover only injuries or illnesses that are not work-related
The cost of occupational coverage will be higher if you work in a "high-risk" environment, such as using heavy machinery.
Length of the Benefit Period
The benefit period is the maximum length of time that disability income benefits will be paid to the insured for each new disability. Short-term policies provide benefits for up to two years, while long-term policies may pay lifetime benefits – the longer the benefit period, the higher the cost of the policy.
Generally, the cost of insurance coverage increases as you get older.