Important Life Insurance Information:
What Is a Disability?
When considering the purchase of life insurance or disability insurance, it is vital to look at the definition of disability in each policy. In addition, you must consider how that definition applies to your specific job situation.
Disabilities carry adjectives such as "total and permanent," "partial" and "temporary." Frankly, most disabilities are "partial" and "temporary."
Disability policies also have definitions relating to your occupation. The best, and most expensive, coverage is that which kicks in when you are unable to perform your specific job, (especially if you are a key man employee).
* Example. Say a neurosurgeon loses his or her hand in an accident. The person could still be a physician, but probably could no longer perform the duties of a neurosurgeon. By the definition of so-called "own occupation" policies, this person is disabled.
In contrast to "own occupation," there is "any occupation" coverage. In this case, if the person can perform a job that requires the same skills and training, he or she would not be disabled. In the case of the neurosurgeon, if he or she could continue to serve as, say, a general practitioner, that person would not be disabled. However, some disability policies will pay some of the difference in salary that results from having to change job duties.
Please keep in mind that some disability policies define "any occupation" to be truly that any occupation, regardless of the amount of skill and training required.
<< Personal Disability Insurance | Index | Disability and 'Income Lost' >>
Seeking Life Insurance?
- Term Life Life Insurance - Protect your family for a specified period of time, called a term.
- Key Person Life Insurance - Sheild your company from the consequences of big loss
- High Risk Life Insurance - Special life insurance for those who have trouble finding great rates for their life insurance
- Permanent Life Insurance - Universal life insurance is permanent and flexible
