Unfortunately, at some point or another, many employees have to look into disability insurance. This coverage takes care of you when you have to miss work because of an injury or an illness. Many employees use this type of coverage, but finding the right kind can be tricky because there are so many different types.
Generally, there are two types of disability policies: short term and long term. Short term policies have a waiting period of up to 14 days, with a maximum benefit period of no longer than two years.
Long term policies have a waiting period of several weeks to several months, with a maximum benefit period which can range from a few years to the remainder of your life.
Disability insurance policies also have two different protection features: non-cancelable and guaranteed renewable.
Non-cancelable policies cannot be cancelled by the insurance company, unless payment stops. This lets you renew the policy annually, without the premium being raised or a decrease in benefits.
Guaranteed renewable lets you renew your policy with the same benefits you’ve been receiving, without the policy being cancelled by the company. With this type, your carrier has the right to increase your premiums as it does so for all other policyholders in the same rating class as you.
It’s important that you’re receiving the right disability insurance. Have questions? Contact us today to learn more about disability insurance. We’re CounterPoint Insurance, based in Bedford, New Hampshire.
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