Disability Income Insurance can be a lifesaver in cases where unforeseen circumstances force a person to give up their job, thereby reducing the source of income. It is for this reason that disability income insurance has become a must-have plan. This is especially true of those with responsibilities to their families. You must consider several factors as a new buyer to find the best TriCare Services.
In the United States, there are two different types of disability policy:
STD (Short-Term Disability): The maximum period for benefits is two years, with a waiting period between 0 and 14 days.
Disability Benefits (LTD): A long-term disability can be a period of several weeks or months with a benefit period ranging from few years up to your lifetime.
Customers should understand that there are two main types of disability insurance policies. They include.
Nocancelable: In the Noncancelable option, an insurance company can’t cancel the policy except if the premiums are not paid. It allows the renewal of your policy each year with no additional premiums and without any payment reduction.
The company cannot cancel a policy that is guaranteed renewable. However, your insurance company has the right to increase your rates as long as they do so for every other policyholder in your rating class.
You should also consider the following options when purchasing disability income insurance:
Option of Additional Purchases – This option gives the right to purchase additional insurance later.
Coordination of Benefits- Your insurance benefits are dependent upon other benefits. Your policy specifies a certain amount that you can expect to receive across all policies.
Cost-of-living adjustment (COLA). A COLA is an increase in your disability benefit based upon the Consumer Price Index. The COA will result in higher premiums.
Premium refund: In the event that the insured does not make a claim during a specified time period as declared by the contract, the insurer is required to reimburse the portion of premiums.