Benefit Amount
Disability insurance typically pays 60 percent of your income
should you become disabled. This coverage is designed to provide
adequate income to cover basic needs if you cannot work.
Term of Benefits
You may choose disability coverage that pays you for two years,
five years, until age 65, or even until age 70.
Elimination Period
The elimination period is the waiting time between the onset of
your disability and when you first start receiving benefits. You
can save money if you agree to a longer waiting period before benefits
are paid. The industry average is 90 days.
Non Cancellable
“Non Cancellable” means that, once the insurance company has approved you,
it cannot cancel your policy unless it stops covering everyone in your occupation.
It also means the company cannot raise your premiums. You are likely to pay more for
this type of policy than others.
Guaranteed Renewable
A guaranteed renewable policy cannot be canceled, but the company can raise the
premiums, provided that it raises the rates for an entire class of policyholders.
Premiums for guaranteed renewable policies can be less expensive than noncancelable
policies.
