3 Disability Insurance Elements
Getting the right disability insurance coverage primarily amounts to getting three things right. Those three things are:
The amount of coverage
The duration of the benefit period
The duration of the waiting period
Getting the right amount of coverage amounts to making sure that your monthly benefit from your CT income replacement policy is equal to or greater than the amount of money you need each month. A cost of living rider will help make sure that your policy’s benefits keep up with inflation.
This rider will adjust your benefit each year that you are receiving benefits. However, it will not adjust your coverage amount during the period before you have a claim. You will need to increase your disability coverage by adding to your coverage if your needs change before you have a claim.
The duration of the benefit period controls how many years you can receive disability insurance benefits. Your benefits will end when you are healthy enough to go back to work or when the benefit period ends. A longer benefit period will mean a higher premium
The duration of the waiting period also impacts your premium. The waiting period is the length of time you will have to wait between the onset of your disability and your eligibility for benefits.
You will not receive a check at the end of your waiting period. You will need to factor in a few more weeks because your insurance company will need time to process your claim.
Understanding the three basic elements of a disability insurance policy will make it easier for you to make decisions about this important coverage.
