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Disability income insurance provides
income during an extended period of disability. The Glatfelter
Agency can help you select the appropriate plan for your needs.
What to Look For In a Policy
Definition of disability
Are education, experience, and past earnings
taken into account in determining whether the insured is qualified
to resume work? Many policies provide for an initial own occupation
definition of disability, for a specified period of time,
after which a different definition of disability applies.
Partial or residual benefits
Partial or residual disability benefits may
be paid in some policies when the impairment allows the insured
to perform only a portion of his or her duties. This provision
may also pay benefits in the event the disability reduces
the insured's income by a certain amount (for example, 20%
or more) from pre-disability levels.
Cost of living adjustment
Is there a cost of living adjustment (COLA) which would increase benefit payments after a
disability occurs?
Cancelability and renewability of policy
Except for non-payment of premiums,
is the policy non-cancelable or guaranteed renewable? Non-cancelable
generally means that the insurance company cannot cancel the
policy, change the policy provisions, or increase policy premiums
after issue, as long as premiums are paid on a timely basis.
Guaranteed renewable is similar, but allows the insurance
company to increase the premium.
Waiting and elimination period
Is the waiting or elimination period proper for the insured's circumstances? Commonly available
periods may include 30, 60, 90, 180 and 360 days. Naturally, the longer the elimination period one
selects, the lower his or her premium payments will be. However, a person's needs, cash reserves,
and income sources should be the deciding factors in selecting a proper elimination/waiting period.
Benefit period
What benefit period should be selected? Since a long-term medical disability can be financially
devastating, one should elect a long-term benefit where possible. Some companies offer lifetime
benefits periods, but periods as short as 24 months to 60 months are also available.
For more information on how The Glatfelter
Agency can help, please contact us by calling 800-632-1884
or if you prefer, submit a request on-line
for more information.
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