You've decided to obtain disability income insurance and have done your homework to leam about the features of different planis. Double check your knowiedge to help you select the plan that's right for you by answening the following questions. You love your job and if you become disabled don't want to do any other job. Yet, you'll need an income. Even though it will cost you more, you will buy a policy witha definition of disability of The cost is more because the insurer has flexiblity when determining if you're eligible for benefits. When you shopped for a disabtity income insurance plan, the likelihood of finding a plan that would pay 95% of your gross income was You found that the usual range of gross pay that's covered with disability income insurance is In many cases, these people could then collect percentages coald encourage some people to because the pay from their jobs. Limiting the amount of disability benelits to these percentages usually covers necessities adepuately and their in their recoveries enough to return to work and thus tetum to their full income level. How long should you receive benefits? Upon retirement at 65 , you expect to collect a pension, Socul Secunty, and draw on your IRA. Your best friend works as a consultant, doesn't report income, and has a small IRA. You will most likely buy a disability income ensurance policy that covers you You suggest that your friend purchase a policy that provides coverage Your choice and suggestion are based on that fact that disability income insurance provides funds when income is lost due to iliness of injufy. If you become disabled after you tetire you lose your pension, Social Security, or IRA income. If your friend becomes disabled, the small iRA is to be sulficient to provide for basic necessities. Additional income You plan to take a vacation to go helicopter skaing and will be sure to purchase your disability income in-surance policy before the trip. You should also make sure to take your vacation the policys period expires because if you get hurt during that time, you will You've had a disability income insurance policy for many years. You have an emergency savings account that would support you for thee months. If you lose income due to injary of illiness, you plan to use these funds unsi the 90-day period expires, after. which you begin recenving benefits from your disability income insurance policy. Probationary and wasing periods are timular in that they help keep colts down, but they alwo dafeni Noncancellation and waiver of premium clauses A friend of yours has a great job that pays welli, the plans to work all tus life. His only source of income is his payched; the takes trins and enjoys other extras in life. Now that you know that becoming disabled can bring financial ruin, yout stronghy recommend that your friend purchase disability income insurance, It is most important that your friend's policy indudes a clavse: You explain to your friend that a clause would relicve him of the responsibilty of continuing to pay the insurance premiums when collecting benefits. But a Caquse means be would always have coverage. If the insurance cornpany canceled his policy and he becarne drabled, he'd lose a lot than he would it he collected benelits and had to contivere to pay premwums. begin receiving benefits from your disability income insurance policy. Probationary and waiting periods are similar in that they help keep costs down, but they also ddffer. Benefit payments-both current and future-are prohibited for injunes or illinesses that occur in the . Benefit payments for injuries or illinesses that occur alter the period. This period is usually period has elapsed. Noncancellation and waiver of premium dauses A friend of yours has a great job that pays well. He plans to work all his life. His only source of income is his paychieck. He takes trips and enjoys other extras in life. Now that you know that becoming disabled can bring financial ruin, you'll strongly recommend that your friend purchise disability income insurance. It is most important that your friend's policy includes a. clause. You explain to your friend that a clause would relieve him of the responsibility of continuing to pay the insurnace premiums when collecting benefits. But a clause means te would always have coverage. If the insurance company canceled his policy and he became disabled, he'd lose a lot than be would if he collected benelits and had to continue to pay premiums. The cost of premiums for men and women The cost of premums for disability income insurance with the same terms is for a woman than a man. A woman will pay aboroximatelv the same premuin as a man her age for coverage with restictions than the maris. The reason is that