Disability Insurance: Policy Information, Choices, Savings, and More

Disability insurance can replace a portion or all of your income if you become disabled and cannot perform your job. 

·    Will Social Security Pay if I Become Disabled? Yes, you can collect Social Security benefits if you become disabled but is very difficult. In order to collect Social Security benefits due to a disability, your disability must be severe enough to prevent you from doing any kind of work, not just your current job. In addition, the disability would need to be classified as permanent.

Even if you are lucky enough to qualify for Social Security benefits, the benefits most likely will not be enough for you to maintain your current lifestyle or even a decent living. To learn more about disability insurance see Considering Disability Income Insurance

·    Can I Get Disability Insurance Even if I Have Health Problems?  Just because you have current health problems or a history of health problems does not mean you will be denied disability insurance coverage. Sometimes you may be able to get coverage with exclusions. For example, if you have a history of hip problems you may be able to get a policy that will cover everything except for a hip related disability.

You will need to answer honestly any information requested by the disability insurance company. In addition to questions about your current medical state and history, your medical records will be requested and a medical exam will be administered. The medical exam will consist of urine and blood samples along with height, weight, and blood pressure measurements.

·    When Will My Disability Insurance Coverage Start?  Knowing when your disability insurance policy started and knowing whether you have conditional coverage is important. Every policy is different and your start date will depend on your policy.

Some companies offer "conditional coverage." Conditional coverage will typically give you temporary disability insurance after your medical exam is administered and your fist premium payment is made. When your policy is officially approved, the temporary conditional coverage will be replaced with your permanent disability insurance policy. You will want to check with the agent handling your disability insurance policy to determine your policy's official start date.

·    How Long Will I Have to Wait for My First Disability Payment?  Disability income insurance is designed to replace one’s income when they are no longer able to work due to a disability. The amount of time one would need to wait before receiving their first payment is called the Waiting Period.

Your waiting period will depend on your policy. Waiting periods for your first disability payment can range anywhere from 60 days to a year depending on your policy's particular waiting period. If you are able to choose your waiting period and would like a lower disability insurance premium, you will want to choose a longer waiting period.