Disability Insurance

Disability insurance is a way to protect yourself from injuries that make it harder (or impossible) for you to work. Disability policies typically address two separate types of coverage – short-term and long-term. As you might expect, one is temporary and the other is permanent. When you ask Brian P. Cook Insurance about disability coverage, it’s important to consider the following options:

  • Protection: Disability policies can offer two different guarantees to ensure that you get the coverage you need. A “Non-cancellable” disability policy is one that you can continue to renew at the same cost and level of coverage as long as you pay the premiums. A “guaranteed renewable” policy is slightly different, in that the insurer can increase the premium you have to pay.
  • Additional Purchase: This is language that guarantees your right to add more coverage to your policy (that you pay for) at a later time.
  • Coordination of Benefits: In many cases, you will have multiple insurance policies paying you when you’re disabled. A Coordination of Benefits clause sets a guaranteed target amount for your total benefit, and pays out to ensure that you reach it.
  • Cost of Living Adjustment: A COLA ties your disability benefits to the Consumer Price Index, so that they rise along with inflation. Note that selecting a COLA will increase your premiums.
  • Partial / Residual Rider: This option allows you to collect a reduced benefit if you find yourself able to perform some work or work part-time following your injury.
  • Return of Premium: If you don’t make a claim on your disability insurance, your insurer will refund a portion of the premium you’ve paid them. The specific percentage returned and the amount of time without a claim must be specified in your disability policy.
  • Waiver of Premium: If your policy features this provision, you will not have to pay your insurance premiums once you’ve been disabled. Not that this provision typically doesn’t start until 90 days after your injury.