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Disability insurance definitions, riders and provisions

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When you're searching for a disability insurance policy, do you know how to determine which policy is best for you? One way to do so is to learn how to spot the differences between different disability insurance definitions, riders and provisions.

-- Waiting periods: This is how long you must wait before you will receive your first disability check. You also want to know how long you'll keep getting those checks. In most cases, this is one of the most important things that dictate the price of the policy. Ninety days is the most common waiting period chosen, although it can be as low as 30 days or as long as 180 days.

-- Total disability definition: The policy will specifically state what total disability is defined as. If you meet that definition, you could fall into a claim that results in full monthly benefits.

-- Cost of Living Adjustment Rider: This is also known as COLA and it is used to increase the monthly benefit to stay current with inflation. For example, the benefits could increase by 3 to 6 percent each year to ensure that you can keep up with the bills.

-- Catastrophic coverage: If you have this rider on your disability policy and you are catastrophically disabled, there could be a monthly benefit issued in addition to any other benefit payments you receive each month. For example, if you are cognitively impaired or irrecoverably disabled, your benefits would increase if you paid for this rider on your policy.

These are just a few things that you should consider when purchasing disability insurance. However, if you need to file for benefits and your claim is denied, you may find the advice and guidance of an experienced California attorney very helpful.

Source: hcplive.com, "You Are Your Greatest Asset: Income Replacement / Disability Insurance Part II," Bob Bhayani, Sep. 08, 2016

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