Cost-of-Living Adjustments (COLA)
This is a provision dealing with increasing benefits during periods of disability. It provides either a floating percentage increase or a fixed-percentage increase. In most cases, extra premium is required to add this feature.
Partial Disability Rider
Under this optional rider, you may return to work part-time, collect part-time income and also partial monthly disability income benefits.
Return of Premium Rider
If the insured has no disability and no claims within a specific period of time, the insurance company is required to refund a portion of premium paid.
Additional Insurance Option
Under this provision, the insured may simply purchase additional disability insurance. In most cases, additional underwriting will be required.
Dr. Jones, a plastic surgeon, had an unfortunate automobile accident where she lost one hand and one foot. She is unable to perform plastic surgery, but now works as the office manager at a local hospital. Under what type of disability policy might she receive income benefits?
I. Own Occupation
II. Any Occupation
III. Presumptive disability
A. II only
B. I and III
C. II and III
D. IV only
Since Dr. Jones is able to perform another occupation, an "Any Occupation" policy would not pay disability income benefits, so answers A and C are eliminated. A non-cancellable policy simply means that your policy will stay in force if you pay premiums and the premium in turn will remain level. The correct answer is an "Own Occupation" policy or a provision for "Presumptive Disability".
Taxation of Premiums and Benefits
InsuranceFor a high-earning professional, income protection is essential. Here's what to look for in a disability insurance policy.
Financial AdvisorDoes it make sense to pay an additional cost for a waiver of premium rider on a life insurance policy?
Personal FinanceDo you know how you’d pay the bills if you lost your job, had a health crisis or needed a major car repair? That's why an emergency fund is essential.
Financial AdvisorGoing on disability can be a stressful time financially. Here are 3 steps to take on disability to help protect against significant financial blowback.
Financial AdvisorHere's how financial advisors can help clients with disabilities arrive at the best solution over the long term when it comes to planning for retirement.
Financial AdvisorAdvisors with clients who receive disability benefits can carve out a profitable niche by helping them integrate this income into a financial plan.
TaxesDue to the Achieving a Better Life Experience (ABLE) Act, many people with disabilities will have an easier time financing their lives, starting in 2016.
InsuranceWhat does it mean to insure your income? Here are a variety of ways to do it and some insights into when it might make sense to invest in income insurance.
RetirementThe social security disability program is nearly bankrupt and could run out of money by 2016.