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> Guides >Disability Income Insurance > What Policy Provisions May Be Important? Member Education Guides DISABILITY INCOME INSURANCE CONSUMER GUIDE WHAT OTHER POLICY PROVISIONS MAY BE IMPORTANT? There are several additional features that are important in an income protection policy. Four of these features are return to work, rehabilitative employment, survivor income, and waiver of premiums: Determine if the policy encourages you to return to work. In most cases, if a disabled person returns to some type of work, but suffers a loss of income due to part-time employment or downgrade in position, then a lower amount of pre-disability salary would be paid. The percentage of loss of more than 20 percent of pre-disability salary would result in payment of partial disability benefits equal to the same percentage of the regular monthly benefit as the percentage of lost income. Sometimes benefits are payable if you engage in company-approved rehabilitative training or work while disabled. Typically, the total income received during this rehabilitative period cannot exceed your pre-disability annual compensation. Some insurance plans will pay either a lump sum or a continuing monthly benefit, to a named beneficiary if the insured dies after being disabled for a period of time. While this is similar to a life insurance death benefit, it may be restricted to accident disabilities, or to some period of time while you were receiving disability benefits. It is usually a lump sum payment equal to a limited number of monthly benefits. Since it is important for you to minimize your expenses when you become disabled, determine under what conditions premiums are waived. Waiver of premium normally requires you to be disabled for a certain number of months (e.g; 3 or 6 months), or be receiving benefits for some period of time before waiver of premium is effective. If you are covered by an employer group plan, having your premiums deducted from your income, what might happen to your premiums if you become disabled? While you are disabled, you might not be receiving income. Therefore, make arrangements directly with the insurer to continue paying your premiums on your own. Otherwise, your policy might lapse due to non-payment of premiums before any waiver, if present in your policy, is ever activated.
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