Disability Insurance FAQs

What kinds of disability insurance are there?

There are two kinds of disability insurance.   First there is short term disability insurance or STD.  This coverage has a waiting period of up to two weeks and usually stops paying out after two years.  The other is long term disability insurance or LTD.  This insurance can have a waiting period of up to a few months.  Depending on your plan it will pay for years or even for the term of your life.

Does disability insurance replace the income when I am disabled?

You need to be sure to ask your provider this question.  Most plans (depending on what you pay for) will replace a portion of your income.  You also need to make sure that there is something in your policy to take into consideration a cost of living adjustment.

What are the best questions to ask my insurance provider?

·         Does my plan provide for a cost of living adjustment?

·         Is my plan guaranteed renewable?

·         Can my plan be cancelled by my insurance company?

·         Can I purchase additional benefits to add on to my plan at a later date?

·         Does my plan have a provision whereby I can go to work part time and still collect part of my benefit?

·         Do I still have to pay for the coverage after I am disabled for a period of time?