What Should You Remember?

What Should You Remember?

When you are considering individual disability income coverage, a well-trained benefits consultant, financial counselor, or insurance agent can help. Ask about the following:
  • What is an adequate level of benefits if you are disabled, in relation to your present and future obligations?
  • How long of a waiting period should you select to fit your circumstances until benefits begin?
  • How long do you want to receive disability income should it become necessary?
  • What related benefits, such as partial or residual disability, are available?
  • Is the policy noncancelable, guaranteed renewable, or conditionally renewable?
  • How much coverage are you eligible for at your present salary?
A final word

Insurance policies are legal contracts. Read and compare the polices you are considering before you buy one, and make sure you understand all of the provisions. Marketing or sales literature is no substitute for the actual policy. Read the policy itself before you buy.

Ask for the insurance company's ratings. The A.M. Best Company, Standard & Poor's Corporation, and Moody's all rate insurance companies after analyzing their financial records.

Ask for a summary of each policy's benefits for an outline of coverage. Good Advisors and good insurance companies want you to know what you are buying.

Don't be afraid to ask your insurance agent to explain anything that is unclear. If you are not satisfied with an agent's answers, ask for someone to contact in the company itself.

And bear in mind: Even after you buy a policy, if you find that it doesn't meet your needs, you generally have 10 to 30 days (this varies by state) to return the policy and get your money back.