The Two Types

1. Short-Term Disability (STD) - These policies have a waiting period of up to 14 days and could provide a benefit period of a maximum of two years.

2. Long-Term Disability (LTD) - These policies have a waiting period of several weeks to several months and provide a maximum a benefit period ranging from a few years to the rest of your life.

 

Protection Features

Noncancelable - Your policy cannot be canceled by the insurance company, except for nonpayment of premiums. This allows you to renew your policy with no changes in premiums annually.

Guaranteed Renewable - The ability to renew your policy and not have the policy canceled by the insurer, though the company has the right to increase your premiums if they do so for all other comparable policyholders.

 

Things to Consider

• Additional Purchase Options  
  Your insurance company gives you the right to buy additional insurance at a later time.

• Coordination of Benefits  
  The amount of benefits you receive from your insurance company is dependent on other benefits you receive because of your disability. Your policy specifies a target amount you will receive from all the policies combined, so this policy will make up the difference not paid by other policies.

• Cost of Living Adjustment (COLA)  
  The COLA increases your disability benefits over time based on the increased cost of living measured by the Consumer Price Index. You will pay a higher premium if you select the COLA.

• Residual or Partial Disability Rider  
  This provision allows you to return to work part-time, collect part of your salary and receive a partial disability payment if you are still partially disabled.

• Return of Premium  
  This provision requires the insurance company to refund part of your premium if no claims are made for a specific period of time declared in the policy.

• Waiver of Premium Provision 
  This clause means that you do not have to pay premiums on the policy after you’re disabled for 90 days.