Disability protection provides you with guaranteed1 long-term income that can help make mortgage payments, car payments and handle household expenses should you be faced with disability. The probability of suffering a disability exceeds the probability of death during an individual's working years.2 Disability Income Insurance helps to replace a percentage of your current income if you are unable to work, whereas health insurance is designed to cover the medical expenses associated with a disability.
Considerations When Choosing Disability Income Insurance
As you consider buying disability income insurance, there are a few factors that should be considered regarding policy type and how a policy is priced. You will want to review the following:
- Waiting Period: 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.
- Definition 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.
- Your Occupation: 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.
- Your Age: Generally the cost of insurance coverage increases as you get older.
To learn more about disability income insurance, simply call us toll-free at 1-800-724-9949 to schedule and appointment or visit your nearest M&T branch. You can also “Get Started” on your personal or business insurance needs right now, online.