Disability Insurance

Individual or Self-Employed Disability Coverage

Individual disability insurance (DI) replaces lost income when a person is disabled und unable to work. The basic elements of a DI policy include an elimination period, which is the period between the time when benefits are triggered and the payments begin, the benefit period, which is the length of time benefits are paid for, the benefit amount and inflation protection. The maximum benefit amount available is 66% of a person’s income. Underwriting not only includes the health history and current condition, but also occupation and hobbies. Dangerous occupations may not be covered and dangerous hobbies can be excluded from coverage. Due to the many variables that make a disability policy, it is best to meet with an agent to discuss individual situations.

Group Disability Coverage

Group disability can be either short term, where weekly benefits are paid for up to 26 weeks, or long term, with benefit periods of two to five years. The benefit payment is usually 60% of salary and is offset by workers compensation payments. Underwriting for group disability plans is either simplified or not required at all, depending on the group size.