Finding the Best Disability Insurance Policy for You
Finding the Best Policy
Even after determining that you need coverage and calculating the amount of that coverage, you still must locate the right policy. Not only should you pinpoint the policy that gives you the best coverage in relation to your financial needs, but there are factors such as waiting periods and premiums that can also help you find the best policy for your needs. Here are some important factors to consider.
The Younger, the Better
Don’t wait until you’re older to look for a policy. Generally, coverage is much costlier the older you go, since age is a contributing factor in the severity of disability. While you might not be able to afford a policy as well as you might in the future, weigh the cost of not being able to work the premiums of a policy.
Some policies have clauses or conditions which can render you coverage invalid. Make sure that your policy is non-cancelable, which means that as long as you make every premium payment on time, coverage cannot be cancelled and premiums cannot be raised.
Long Waiting Period
The waiting period is the time between the initial incident or occurrence of disability and the beginning of payment of benefits. You must be impaired for the entire waiting period for benefits to be paid to you, a period of time that can last between 28 days and three months.
Financially Strong and Highly-Approved Providers
One of the worst financial scenarios imaginable is to pay premiums to an insurance provider for year, even decades, and then have the company go bankrupt. After years of payment, your policy has been rendered useless. Make sure that the provider you choose is one with a strong financial history and good credit. Independent guides such as Standard and Poor’s can give you credit ratings and the recent history of an insurance company.
Similarly, make sure from brokers and other people who have purchased policies have been satisfied with the conduct of your provider. Customer approval should be high, but also make sure that your insurance company is not overly-conservative when it comes to making payouts on policies. If it appears that your prospective provider has a history of withholding benefits, you might want to try another.
You will find that multiple companies will have policies with superficial similarities that will make it difficult to distinguish between them. Even if you find a policy that seems perfect for your needs, you should always find at least two others like it from other companies and compare them. There might be elements you hadn’t thought of that can that can have a significant financial impact. Use the following list to rate the three policies you have found, and make your final determination based upon what appears to be the best policy as a result. The policy is non-cancelable and guaranteed for the length of its coverage.
- The period of coverage is as long as you need it to be.
- The waiting period meets your needs.
- Coverage lasts all the way to age 65 (if that is your need).
- Is the policy renewable past its termination, if it is at age 65?
- Is the definition of disability comprehensive, including sickness and injury?
- Does the policy require that you still pay premiums when disabled?
- Which policy is overall the most affordable?