A disability insurance policy could make you feel more financially secure if you cannot work due to an injury or illness. Suppose you’re considering purchasing disability insurance or have already signed up but are unsure of the specifics. In that case, there are five things that you might not be aware of about disability insurance.
It Gets Possible That You Will Not Be Able to Maintain Your Insurance Coverage Once You Leave Your Employer
Disability insurance is available as an individual insurance policy directly from an insurance company and as a collective policy with your employer. If you get covered under an insurance policy for group insurance, it may offer the option of portability. If your insurance coverage is portable, you could be able to carry the entire or a portion or all of the disability insurance with you when you depart your employer. If your coverage isn’t flexible, you’ll lose your coverage upon the end of employment.
You Can Choose to Select Your Time of Elimination
The majority of disability insurance policies come with elimination timeframes. A period of elimination gets defined as the period from the day you could not work until the day you begin receiving benefits. Elimination periods vary from zero days to one year. Sometimes, your employer selects the option of a period of elimination for your good fortune; however, often, you can decide what’s best in your financial circumstances.
If you consider your elimination time view the number of sick days you’ve got and the length of time you can live without a salary. Take that number into consideration to decide the best elimination period. For instance, if you are confident that you have an abundance of time off you can utilize, and your spouse’s income will last for one month, you might opt for a 30 day elimination time. The cost of your insurance may be different; however, the benefit is the same. In most cases, an extended elimination period will result in lower monthly premium payments than a short elimination timeframe.
Your Benefit Period Begins When the Elimination Period Has Ended
It’s first essential to know how the delay in claiming disability benefits. If you suffer from an illness or injury that is covered, the doctor will decide the time frame you can’t work. Your doctor declares that you cannot work for eight weeks. The elimination period begins at the time you are declared disabled. After the elimination period gets completed then, you start your benefit time. If you had a 14-day exclusion period, your benefit would be six weeks.
The Amount You Receive from Your Benefits Could Be Affected by the Duration of Your Help
If you receive the monthly disability benefit, it is payable monthly for any period shorter than one month in length will be prorated. This time frame varies in size based on how soon a claim is processed and how the plan gets customized to your individual needs.
Disability Benefits Don’t Automatically Grow When You Earn a Salary
Your disability benefits are adjusted to your current earnings upon request – not automatically with each enrollment. If your compensation has changed, discuss it with your account manager during registration to increase the amount you receive. Call Ottawa Life insurance at (613) 454-1424 or send an e-mail at info@ottawa-lifeinsurance.ca.
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