The Biggest Problem with Disability Insurance

It is my opinion that the biggest problem with disability insurance is how insurance companies define “your job.” Disability coverage is designed to provide income to the insured in the event they become disabled and are no longer able to perform their job duties. The definitions range from unable to do any job to unable to do the specific job for which you are trained or currently engaged in.

Obviously it’s to your advantage to purchase a policy which provides protection to you when you are unable to perform any type of work at all. The company can’t suggest that you try a different line of work or deny benefits because they think you could work in any type of job doing whatever.

A policy which provides coverage only if you are unable to perform your current job is usually recommended. You might not be able to do your old job but there may be other types of work you could do. The company can not deny benefits because you are unwilling to perform a different type of work.

There are variations on these two extremes. Professionals, such as surgeons, obviously probably don’t want to perform other types of work if they become disabled. This probably is not as important for the less educated or less skilled worker. The most important thing is to ask lots of questions before you purchase a policy. Make sure you understand the company’s definition of work and how your coverage works. Disability is difficult enough to deal with. It’s even worse if you believe you have coverage, only to find out that you don’t.

Margaret Norton, a Personal Life Coach/Writer/Speaker, lives in St. Peters, Mo.

(photo credit: spunter)

April 9th, 2009 by admin | Posted in Disability Insurance | (26)