What Should I Look For in a Disability Insurance Policy?
Things to Look for in a Policy
Generally speaking, here are a few things that you will want to look for when selecting a policy:
- Make sure the policy is a true “own occupation” policy.
- Make sure that they policy provides for lifetime benefits.
- If possible, add a specialty rider that clearly defines your own occupation as your specialty.
- Try and find a policy with a COLA (cost of living adjustment) provision. This provision will increase your potential benefits by adjusting for inflation as time passes.
- Make sure that you get the highest benefit amount you can afford. Remember, if you’re unable to practice, your monthly disability payments may be your only source of income.
Things to Avoid in a Policy
Generally speaking, here are a few things that you should avoid when selecting a policy:
- “No Work” provisions that only provide benefits if you are unable to perform the material and substantial duties of your own occupation and you are not working in any other occupation.
- Mental illness exclusions.
- Substance abuse exclusions.
- Provisions requiring you to apply for Social Security benefits.
- Remember, purchasing disability insurance is no different than any other significant purchase. Be sure to take your time and obtain quotes from multiple insurance companies before making a final decision.
For more information regarding what to look for in a policy, watch the podcast below where Ed Comitz discusses the importance of disability insurance with Dentaltown’s Howard Farran.