How to choose a Disability Income Insurance Plan

A disability income insurance plan provides a benefit in the event of a disability that results in loss of earnings. Disability income insurance provides a way to help a person recuperate, rehabilitate or retrain in order to get back to work.  The policy pays a long-term benefit, typically up to age 65, that is equal to 60 to 70 percent of the individual’s earnings.  This is done in order to prevent malingering, the desire of the person to not get back to work since they are receiving their earnings in the form of a disability benefit.

Type of Disability Benefit Plan

The type of disability benefit plan that should be chosen should match the needs of the insured. Most individual disability plans provide long-term benefits although there also exist short term benefits that have a benefit period of up to 365 days.  In addition to providing long term benefits, the disability plan should offer a cost of living adjustment for the benefits and the ability to match any social security disability benefits that are due but not payable until after a 5 month waiting period.

Choosing a Disability Income Insurance Plan

Choosing a disability income insurance plan is as easy as meeting with a licensed agent and determining the options available for disability income insurance.  The benefits should dovetail any benefits provided through an employer-sponsored group disability plan and not duplicate those benefits.


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