We're often asked, often by physicians, dentists and other professionals whether they should have their own individual
Disability Insurance
policy or join a group disability insurance program.
Here is a quick summary of the differences, in general, between these types of policies.
Group disability insurance has the advantage of lower price (at least initially) over individual disability insurance. If initial price is the beginning and end of the decision, without any factor brought it in to the decision, then group disability insurance would often be the choice. As far as disadvantages go, here is a list of things to investigate on a group disability policy you're considering:
1) Is it cancelable, i.e. can the insurance company not renew it?
2) What is the definition of disability? Is it own occupation? If so, how long is it own occupation? Does it shift in 2 years or 5 years to "any occupation" or is it own occupation to age 65?
3) If it's a disability policy provided by a company for you as an employee, what happens to coverage if you leave employment?
4) Does it have a residual and a recovery benefit if you return to work partially disabled or with lower earnings? Do you have to be fully disabled and then return to work to receive partial/residual benefits?
Individual disability insurance is insurance owned by you and portable to you. If it is of the right quality it will be guaranteed renewable to age 65 and non-cancelable which means rates can't be changed as well. Because of this and other factors your premium is higher but you do get what you pay for in this case.
The right individual disability policy will also have own occupation coverage along with recovery and residual benefits that do not require any period of total disability before kicking in. (In other words, you could have a degenerative illness where the disability comes on gradually which costs you income and the policy would pay.) Many group or association group policies do not have this important benefit.
Summary: You may pay more for an individual disability policy, at least initially, but the benefits and contract wording is often much more in your favor.
Note: To learn more with live videos see the
disability Insurance videos at the Protectyourincome.com website.
---
Author, Neil Willner, owner of ProtectYourIncome.com, Disability Insurance Online, provider of disability insurance quotes and information, writes articles on disability insurance for ProtectYourIncome.com. For more information, visit http://www.ProtectYourIncome.com.
Author, Richard Reich, writes articles on disability insurance for ProtectYourIncome.com - Disability Insurance Online, an online source for disability insurance quotes and information. For more information, visit http://www.ProtectYourIncome.com.
