How to choose...
A living benefit. We recommend a disability benefit of not less than 60% of your gross salary. Resist the temptation to purchase less just to save a few dollars each month.
A long term benefit. The key to a disability plan is long term protection. If you became sick or injured and were unable to go back to work, it is important that you have a disability policy that will protect you until you reach at least age 65. Beware disability policies that offer limited benefit durations...anything less than 5-years could spell financial ruin.
Understand Pre-existing Conditions. Most disability insurance policies have a pre-existing condition clause that limits the amount of coverage available for medical conditions that are present prior to the effective date of coverage. Make sure you understand the pre-existing clause before you choose or change your disability plan.
Short term benefits. Most short term disabilities are best handled through sick leave. Why is sick leave the best option? Because it continues to provide your salary and your benefits. For those without a supply of sick leave days, one should consider adding a short term plan to your long term protection. A short term plan simply bridges the gap between the end of your sick leave and the beginning of your long term disability protection.
Beware “add-on” Features. Disability insurance is there to provide protection if you are disabled and unable to earn a living. Some companies selling to educators will add features to a disability plan that are unrelated to disability in the hopes that you will buy their plan. Our advice to you is to read the description of these features carefully. Many of these features will relate to doctor’s visits or hospitalization, and most often you will find that qualifying for the extra payment is difficult.