Do you want an off the lot disability policy, or a super-charged model?
Optional benefits to enhance yourdisability insurance policy
Future Income Option
This rider allows you to increase your amount of monthly coverage from your disability insurance policy in the future regardless of your health or a different type of job at the time. You only have to prove that your personal or business income has gone up, and you will be eligible to increase your benefit each year (on your policy anniversary month). This is great for entrepreneurs and professionals who expect to have a steadily increasing income as their business and clientele grows. When exercising your benefit increase option, you will have to pay a higher premium because you now have more coverage.
Cost of Living Benefit
The moment you go on claim and start receiving monthly benefits, this rider kicks in. Your monthly income will be indexed to inflation (the Consumer Price Index) to allow your benefits to grow over time. As the cost of goods goes up, your monthly benefit will be worth less and less. If, for instance, you were 35 years old when disabled for the rest of your life, by the time you are 65 a $1,000 in today’s money might only be worth $400. You would have lost 60% of the value of your dollar. If your benefit was indexed to inflation you would now be getting $2,500 per month at age 65. The younger you are when buying your disability income protection insurance, the more valuable this benefit is.
This optional feature would allow you to have additional monthly benefits up to $1,500 per month to make sure your savings and retirement plans remain on track. The extra funds are not to be used as additional income, so they are set aside, in trust, into a savings program that you can direct and monitor. At age 55 you would have access to these accumulated funds as a source of additional retirement income if you needed them.
Accidental Death and Dismemberment
You could add additional AD&D insurance to you disability insurance policy. This would pay up to $300,000 of lump sum tax free cash if you died from an accident or injury. A portion of the benefit would be payable if you say lost a limb, or sight in one eye, or became deaf all because of an injury you sustained in an accident. This percentage of benefit is affectionately known as “The Bone Chart” in the insurance industry. This benefit is much less likely to pay out than the monthly income from your disability income protection plan.
First Day in Hospital
This rider allows you to start receiving you monthly income upon the first day of being admitted to a hospital, instead of waiting 30, 60 or 90 days for benefits to start. The conditions are that you have to be in hospital for 72 hours minimum (so at least 3 days before they kick you out) and be totally disabled – not partially disabled. If, due to a sickness or injury you satisfy these conditions, your benefits start immediately. As an example, you get pneumonia and spend a week in hospital. You doctor orders you to bed rest for another 6 weeks before you are well enough to go back to work, at least part-time. If you had a 90 day waiting period on your policy, you might get $0 of paid benefits, but with the first day in hospital rider, you would have received benefits for 7 weeks. That’s almost 2 months of benefits paid for a bad case of pneumonia.
Health Care Profession Benefit
If you work in the health care industry, including doctors, nurses, dentists and associates, paramedics, or generally anyone who has a medically necessary reason to come in contact with blood will receive this benefit. Since these professions are highly regulated, and there is a chance of getting HIV or Hepatitis B and C through their work duties, these additional conditions would pay an benefit. If as a result of having HIV or Hep B or C you are restricted or prohibited from preforming your duties and/or patients refuse to be treated by you because you have to declare you are HIV positive or a Hep B or C carrier, then benefits will be paid.
When there is one place of work with co-workers or a group of professionals all working together and they all decide to get disability insurance policies together, the insurance company will give them discounts. This is very common in a doctors’ office, start up company of skilled workers, group of accountants, etc. You need three or more people to all buy disability insurance policies at the same time and you could receive 10% to 15% off your premiums each. This quasi-group each owns individual contract but have gotten a life-time reduced premium that can not be taken away from them.