Looking for Disability Insurance in Michigan?
You’re covered with Mason-McBride!
It is three times more likely that you will become disabled during your working life than you will die before age 65. That fact alone is proof enough that disability insurance is crucial.
People have been more likely to purchase life insurance than disability insurance in recent years. Why is that?
Insurance consumers are confused about disability insurance. Because there are so many terms to understand, people tend to give up and don’t purchase coverage.
Don’t worry if that sounds like you. The team at Mason-McBride is here to help.
It’s crucial to have disability insurance if you can’t work due to an injury or illness.
You’ll find many companies and brokers claiming to offer the best policy. But you need to understand this type of coverage before buying.
Two Main Types of Disability Insurance
There are two different types of disability coverage:
Long Term Disability
Long Term Disability (LTD policies have a waiting period of several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life
Short Term Disability
Short Term Disability (STD) policies have a waiting period of 0 to 14 days and a maximum benefit period of no more than two years.
Important Disability Insurance Conditions
The insurance company cannot cancel the policy except for nonpaid premiums. This gives you the right to renew the policy yearly without increasing the dividend or reducing benefits.
This gives you the right to renew the policy with the same benefits and not have the policy canceled by the company. However, your insurer has the right to increase your premiums as long as it does so for all other policyholders in the same rating class as you.
More to Consider
You have a few options when it comes to disability insurance besides the traditional policies:
- Additional purchase options
Your insurance company gives you the right to buy additional insurance later.
- Coordination of benefits
The amount of benefits you receive from your insurance company is dependent on other benefits you receive because of your disability. Therefore, your policy specifies a target amount you will receive from all the policies combined so that 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. Therefore, 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 declared in the policy.
- Waiver of premium provision
This clause means you do not have to pay premiums on the policy after you’re disabled for 90 days.
If this sounds confusing, don’t worry. The team at Mason-McBride is here to walk you through your options and ensure you get the best possible coverage for your needs and budget.