Benefit Payments
Some plans pay benefits based on loss of income and some pay based on ability to work.
Some plans pay if you can’t work in your own occupation.
Some plans only pay if you can’t work in any occupation.
Some only pay if you can’t work in any occupation for the rest of your life (called total and permanent disability).
Often, plans combine these definitions of disability and give time limits.
For example, a plan may pay benefits for two years if you can’t work in your own occupation. After two years, the plan may only pay if you can’t work in any occupation.
Most disability insurance gives you monthly payments while you are ill.
Critical illness insurance pays the whole amount in one payment.
Questions to ask:
· How does this policy define a disability?
· Will I be paid if I can’t do my current job or any job?
· Is the policy noncancellable, guaranteed renewable, or commercial?
· Are there limitations or exclusions?
· How long will I get benefits? How much will I get paid?
· What is the waiting period before I can claim benefits?
· If I go back to work part-time, can I get partial benefits?
