The disability insurance elimination period, also known as the waiting period, is the period of time that must elapse in a disability before benefits are paid. Benefits begin at the end of the month after you have satisfied the elimination period. For example, a disability insurance policy with a 90 day elimination period will have benefits start after 90 days of disability have passed. Along with the benefit period, the elimination period is the most common option for customizing the premium of your policy.
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The disability insurance benefit period is the length of time that benefits will be paid while you are on a disability claim. Benefits begin at the end of the month after you have satisfied the elimination period and will be paid until the end of the benefit period. The most common choices are two years, five years, and to age 65. Note that this is the maximum benefit period for a claim. If the duration of the disability is shorter than the benefit period chosen, then payments will stop when the disability ceases.
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Although not as prominent as the main features of disability insurance policies, built-in benefits are nevertheless vital to these policies. They supplement the main features and help enhance the policy. Many built-in benefits form a part of every disability insurance policies, although the definitions may vary among insurance companies. Below is a list of commonly found built-in benefits of disability insurance policies.
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The type of duties a person performs and the nature of the industry they are in have a tremendous impact on the risk of disability. For example, an arm or leg injury may only disable an office worker for a week or two, but the same condition could cause a construction worker to be unable to work for a considerable period. Therefore, an insured's occupation class is essential in determining the premium rate for the policy and its available riders.
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Because of the non-static nature of mortality and morbidity rates, insurance companies have to revise the premiums offered by their life and disability insurance policies once in awhile. But what about policies which are already in force? Are the premiums for a disability insurance policy guaranteed, even in the face of increased claims? Or can the insurance company make changes to its premium, provisions and riders at the time of renewal?
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