- Disability Benefit – the monthly amount you will receive if you are unable to work due to long-term illness or disability.
- Elimination Period – the amount of time between the on-set of disability and the day you begin receiving the disability benefit; 30, 60, 90, or 120 days are the most common elimination periods.
- Benefit Period – the amount of time that you can receive disability benefits for once disabled. Options commonly include: 2 years, 5 years, or to age 65.
- Occupation Class – occupations will be “graded” on a scale from “B” all the way to “4A,” the latter being the highest. The premium will be reduced with a higher occupation class. The occupation class rating does not just take into consideration what type of job you have; it also factors in years of experience and earnings.
Items # 1 – 3 above are customizable by the policy owner and will have a direct impact on the cost of the policy. In addition to these factors:
- “Riders” can be added on to the policy for further customization. Some examples include:
- A “Cost of Living” feature that, while disabled, will increase your disability benefit to match inflation
- “Future Income Option,” a feature allowing the policy owner to increase their disability benefit at scheduled intervals without needing to prove health status
- Like other forms of life & health insurance, a variety of factors will determine someone’s eligibility to qualify for a disability insurance policy. Some components that determine the cost and eligibility include:
- Smoking status
- Medical history
- Driving record
- Family history
DISCLAIMER: This article is not meant to decide claim eligibility. The terms and conditions of your own policy or any Group Benefits Plan will determine your qualification for any disability benefits.