DEFINITION OF TOTAL DISABILITY
It's important to know if the disability insurance plan's detailed definition of total disability
protects you in your medical specialty or if it generally states your inability to work at any job.
Only a comprehensive disability insurance policy that offers the "true" own occupation benefit will
protect you in your medical specialty and replace your income, even if you are at work in another occupation.
NON CANCELABLE AND GUARANTEED RENEWABLE
This benefit is imperative in all comprehensive disability insurance policy's. Non Cancelable and Guaranteed Renewable
means the insurance company cannot terminate your policy, amend your policy provisions nor raise your premiums so long as
you continue to pay your premiums. A comprehensive individual disability insurance policy will offer this benefit. Many
group, hospital and association plans DO NOT offer this vital benefit.
Not all disabilities are "total". You may
suffer a partial (or residual) disability that limits your ability to work and results in a decrease in income. Under
this important benefit, you are considered residually disabled if soley due to sickness or injury, your loss of income is
at least 15 -20% (Percentage loss depends on policy contract) of your prior income, and you are gainfully employed.
No specific loss of time or duties is required.
Most policies offer benefit periods to age 65, 67 or lifetime.
FUTURE INCREASE OPTION
You are able
to increase your disability insurance monthly benefit, as your salary increases, without providing medical insurability.
This is commonly referred to as Future Increase Option (FIO) or Future Purchase Option (FPO).
WAIVER OF PREMIUM
This assures that if you
become disabled, your premiums will automatically be waived until you're no longer disabled.
This means your disability
benefits may be increased to keep pace with inflation after a disability begins. This is commonly referred to as
COLA (Cost Of Living Adjustment).