Frequently Asked Questions


Here are some of the most frequently asked questions concerning Disability Insurance, why you need it, and how to get it.

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Disability insurance is a policy that provides a recurring benefit amount when an insured is unable to work due to a disability. The purpose of the insurance is to protect you if an accident or illness prevents you from earning an income in your occupation.
Insurance carriers calculate a percentage of your gross earnings. Each insurer has different Issue and Participation limits meaning they will cover a certain percentage less any other individual disability insurance you have in force. Generally, they will cover anywhere from 45-65% of total earnings up a maximum amount of $15,000 a month from all in force individual policies.
A non-cancelable (Non-Can) policy is one where once the policy is issued, the benefit and premium remain the same to age 65. The carrier cannot cancel the policy and cannot increase the premium as long as the premium is paid when due.
Guaranteed renewable means, the insurer cannot cancel or change your policy benefits as long as premiums are paid to age 65, unless a rate change is approved on entire class of policies.
Own occupation also known as True Occupation: You are unable to perform the material and substantial duties of your own occupation even if you can work in another occupation.
You are unable to work in any occupation in which you are reasonably suited by education, training or experience even if it's not your regular occupation.
You will receive a benefit if you are not totally disabled but, due to sickness or injury, you lose time in your occupation or are unable to perform one or more of your material and substantial duties, and are under a physician's care. At the end of your elimination period, you must be experiencing a loss of earnings of at least 20% of prior earnings in your occupation in order to receive benefits.
The maximum time you'll receive benefits if you are disabled.

(Examples: 2 years, 5 years, to Age 65 or to Age 67)
The "waiting period" after you become disabled and before you become eligible for benefits.

(60 days, 90 days, 180 days or 365 days)
You pay no premiums while you are disabled.
Pre-existing condition means a sickness or physical condition for which, prior to the effective date: (1) symptoms existed that would cause an ordinarily prudent person to seek advice or treatment from a physician; or (2) advice or treatment was recommended by or received from a physician.
Increases to your monthly benefit while you are totally or residually disabled, on an annual basis.
Allows you to increase your benefits as your income increases without medical underwriting.
A copy of the Proposed Insured's medical records may be required due to cause. Some examples but not limited to:

  • alcohol/drug treatment
  • circulatory problems
  • mental nervous
  • disorders blood disorders
  • diabetes
  • nervous system disorders
  • cancer
  • hypertension
  • seizure disorders
  • chest pain/murmur
  • kidney problems
  • ulcerative colitis
  • recent physical
PHI may be required due to cause. An interviewer trained by the insurance carrier will call the Proposed Insured to verify information on the application, collect missing details, and provide supplemental information. The underwriter will order the interview if required after reviewing the application.