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Disability
Income...The Basics
A disability
policy is designed to replace lost income when a policyholder
is unable to work due to a covered accident or illness. Disability
policies generally have:
- A
waiting period - A waiting period in disability insurance
is like a deductible on your car insurance. The difference
is that while a deductible for auto insurance is expressed
in dollars ($250, $500, etc.), a waiting period for disability
insurance is expressed in time, such as 60 days, 90 days,
or longer. It is the amount of time that you must wait before
benefits will be paid. The longer the time period, the lower
the premium.
- A
benefit period -
A benefit period can be two years, five years, etc. The
most comprehensive policy is one that pays benefits to Age
65.
- An
occupational classification - Depending on the occupational
classification, the premium and the benefit period will
be determined.
- A
monthly benefit amount - A monthly benefit amount can
be up to 60% of the present income. Benefits are tax free
on an individual policy. The older you are, the more disability
insurance will cost, but once a premium has been established,
it is likely to stay the same throughout the life of the
policy.
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Martinson
Insurance
518 Hawthorne Street • PO Box 8
Alexandria, MN 56308
Phone: 320-763-6518
Toll Free: 800-757-6518
Fax: 320-763-5546
E-mail: agency@martinsoninsurance.com
Web: www.martinsoninsurance.com
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