|About COLA Riders
Cola stands for cost of living adjustment. When you buy a cola rider, you prepare for economic adjustment in the future. Your benefit would compound by a given interest rate each year.
|About replacement income
A disability policy should generally cover about sixty percent of your income, but you may need more or less than this amount, depending on your income sources.
It's important to understand how your insurance company defines disability because it affects your costs and the type of coverage you'll ultimately purchase.
|Group vs. individual coverage
Disability insurance may be included in your benefit plan from your employer or union. You shouldn't ever turn down disability insurance. Group benefits can offer short term or long term disability benefits.
|How can I calculate my needs?
Every family needs disability insurance to replace any lost wages if the main income provider becomes disabled. Disability insurance should generally cover sixty percent of your monthly income.
|Occupation classification data
Insurance companies have a rating system which judges different occupations based on how dangerous they are. If you want to purchase disability insurance, the insurance company may tell you that your job is non eligible, or n-e, because your job is considered too hazardous.
By knowing what types of policies are available, you can ensure that you purchase the insurance policy that's best for you. Your policy should guarantee that you can renew it until your at least sixty-five.
|What about purchase options?
One type of disability rider that you may want to consider is a purchase option. It allows you to purchase more insurance coverage as you get older, or when events, such as marriage or the birth of a child, changes your insurance needs.
|What are Social Security riders?
When you purchase a disability insurance policy, you should understand how much you will receive, the length of the waiting period for benefits and how much your policy will cost.