Elimination/ Waiting period
- An uninterrupted period of consecutive days that begins on the first day that you are disabled and during which the elimination period must be satisfied. The period ranges from 30 days to one year or more.
Automatic Benefit Enhancement rider
- This rider is usually added to a disability insurance policy automatically if there is no adverse medical history and you are not at the maximum amount of coverage for your occupation. It provides a 4% annual benefit increase with premiums adjusted at attained age rates. You have the ability to refuse any increase to keep your premiums level. If you refuse two increases inside of five years, most carriers will remove the rider from the policy. It is an excellent way to make sure your disability insurance benefits continue to grow with your income over the years.
- The benefit period is the longest period of time for which you will receive benefits for a disability from the same cause. Available benefit periods are 2 years, 5 years, 10 years, to age 65. Life time accident and sickness riders are available.
Cost of Living Rider (COLA)
- This is an optional rider you can choose to apply for with your policy. If you become disabled for a lengthy period of time without this rider, your monthly benefit never grows to keep pace with inflation.
Purchase Option/Future Increase Option
- This allows you to purchase additional coverage each year until age 55 without additional medical underwriting. Financial eligibility is determined by your income, employment, and all other disability insurance with any insurer that you own, have applied for, or for which you are eligible.
- The payment amount you will receive for the benefit period selected.
Non-Cancelable and Guaranteed Renewable
- This means you may renew the policy at the end of each premium term until the expiration date. During that time, the premium cannot be raised nor can the policy be canceled by the insurance carrier.
Own Occupation Definition of Total Disability
- Total Disability or Totally Disabled means that, solely due to injury or sickness, you are not able to perform the material and substantial duties of your regular occupation regardless of specialization.
Overhead Expense Disability Insurance – A type of Disability Policy that will pay up to 80% of a businesses operating costs should the business owner become disable.
Residual Disability Rider
- Residual disability means that you are gainfully employed and are not totally disabled under the terms of the policy but, solely because of sickness or injury, your loss of income is less than whot you would be paid working full time. An example is of your income is reduced by 25% then the policy will pay you based upon a formula for lost income.
Buy-Sell Disability Coverage
- A form of disability Income Insurance Incorporated into a buy-sell agreement between the owners (major stockholders, partners) of a business that pays the disabled partner his/her share of the value of a business entity should he/she become disabled.
There are many different types of disability policies available from a wide range of companies. Call Statland and Katz at 301-587-6050 for a quotation today based upon your specific occupation and income requirements.