Be Aware of the Most Important Plan Options in a Professional Disability Insurance Policy
Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Disability Insurance Plan Options and other Disability Insurance topics.
What Are Generally Considered to Be the Most Important Plan Options in a Professional Disability Insurance Policy?
Professional disability insurance programs usually offer a variety of options that many people like and often purchase. Those considered to be of high importance for all professionals include:
- Own-occupation coverage. Most group disability income insurance and low cost individual disability insurance plans define the end of a disability as your ability to perform the duties of any gainful occupation. Having own-occupation coverage means you should continue to be eligible for disability benefits until you are able to resume the duties of your particular occupation or specialty.
- Future increase option. This feature serves to guarantee your future insurability and earnings. As a professional, you can normally expect to earn higher income in the future. This provision allows you to increase your benefit amount when you wish, and it guarantees you insurability even if your medical history takes a turn for the worse.
- Inflation protection. Even if your regular income does not often increase dramatically, you are still subject to the erosion of inflation on a yearly basis. This option provides for an increase in your monthly benefit based on inflation rates.
- Non-cancelable or guaranteed renewable. The unenviable reality is that anyone's medical situation can change rather quickly. These provisions provide the security that you will not be denied coverage should your health decline over the term of your career.
- Return of premium and/or waiver of premium. With reduced income as a result of a covered disability, a waiver of premium means that no monthly premium is due while you are disabled, thereby providing more funds to cover your living expenses. A return of premium disability insurance option states that under certain conditions (usually a substantial time period when no claims are filed) disability insurance companies will return a portion or all of the premiums you have paid during the specified period.
There are other potential disability plan options that are often considered, such as a rehabilitation benefit, transplant and cosmetic surgery benefit, and a capital sum benefit. While all are valuable, the options noted above are often considered to be of high importance to professionals.
Refer to your insurance policy contract for specific information regarding your coverage and for actual terms, conditions and exclusions. The above statements are general in nature and may or may not reflect the actual terms of your insurance policy.