Call Us Contact Us For A Quote | 847.680.0888
     
Homeowners Insurance HOME

A standard policy insures the home itself and the things you keep in it.

Read More
Auto Insurance AUTO

Auto insurance protects you against financial loss if you have an accident.

Read More
Business Insurance BUSINESS

Discover the perfect insurance options to meet your specific and unique needs.

Read More
Life Insurance LIFE

Browse a variety of insurance options in order to find the right one for you.

Read More
Flood Insurance FLOOD

Learn about different flood coverage options that fit your specific needs.

Read More
Boat Insurance BOAT

Finding insurance doesn't have to be difficult. We do the work for you.

Read More

Talk to the agent who sells you your life, health, auto or business insurance—he or she may either sell disability coverage or will be able to refer you to an agent who does.

Your state's insurance department will also have names of agents and companies writing policies in your state.

Make sure that you understand what you are buying and don’t be afraid to ask your agent to explain exactly what is in the policy.

Key things to look for when you shop around

  1. The definition of disability. Some policies pay benefits if you are unable to perform the customary duties of your own occupation. Others pay only if you are unable to perform any job suitable for your education and experience. Some policies define disability in terms of your own occupation for an initial period of two or three years and then continue to pay benefits only if you are unable to perform any occupation. "Own occupation" policies are more desirable, but more expensive.
     
  2. Benefit period. The benefit period is the amount of time you will receive monthly benefits during your life. Experts usually recommend that the policy you buy pay you benefits until at least age 65, at which point Social Security disability will take over. If you are young, you may consider buying a policy offering lifetime benefits because it will still be relatively inexpensive.
     
  3. A policy that will replace from 60 percent to 70 percent of your total taxable earnings. A higher replacement percentage, if available, is more expensive. Evaluate your other sources of income before deciding how much disability coverage you need.
     
  4. Coverage for disability resulting from either accidental injury or illness. 
    An accident-only policy is less expensive but does not provide adequate protection. Ideally, both accident and illness coverage should be purchased.
     
  5. A cost-of-living increase in benefits.  You are buying a policy today that may not pay benefits for a decade or more.
    Should you need those benefits, you will want them to have kept pace with increases in the cost of living. (Some companies also offer "indexed" benefits, keeping pace with inflation after benefit payments begin.)
     
  6. A policy paying "residual" or partial benefits. This type of policy is available so that you can work part-time and still receive a benefit making up for lost income. A standard feature in some policies, and added by a rider to others, a residual benefits policy pays partial benefits based on loss of income without an initial period of total disability.
     
  7. Transition benefits. Offered by some companies, it can offset financial loss during a post-disability period of rebuilding a business or professional practice.
     
  8. Ongoing coverage. A non-cancelable policy which will continue in force as long as the premiums are paid; neither the benefit nor the premium can change. A guaranteed renewable policy keeps the same benefits but may cost more over time since the insurer can increase the premium if it is increased for an entire class of policyholders.
     
  9. Waiting period.  Every disability policy imposes a waiting period, also known as the elimination period. This is the number of days you must be disabled before receiving benefits. If you are disabled during the elimination period, you will not receive any benefits, even though you are not able to work. If the elimination period is short, such as 30 or 60 days, the premium will be higher. A longer elimination period may strain your finances more when you need it, but you will be charged a lower premium. Most experts recommend that you select an elimination period of 60 to 90 days. The first check is usually paid 30 days after the waiting period.  
     
  10. Financial stability. Check the financial ratings of an insurer. Your insurance agent or company representative should provide this information or check with the following companies, which rate insurance company strength:  
     

A.M. Best Company, Inc.
Ambest Rd.
Oldwick, NJ 08858
908-439-2200
http://www.ambest.com  

Fitch Ratings
1 State Street Plaza
New York, NY 10004
1-800-75-FITCH
http://www.fitchibca.com  

Moody’s Investor Services
99 Church Street
New York, NY 10007
212-553-0300
http://www.moodys.com  

Standard & Poor’s Insurance Ratings Services
55 Water Street
New York, NY 10004
212-438-2000
http://www.standardandpoor.com  

Weiss Research
15430 Endeavor Drive
Jupiter, FL 33478
800-289-9222
http://www.weissratings.com

Contact us for all of your insurance needs! 

Buffalo Grove, Lincolnshire, and Riverwoods residents, at R Hobbs Insurance Agency, we can work with you to make sure you've got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable. Just give us a call at (847) 680-0888 or send us a note at chris@rhobbsinsurance.com. We want to help you meet your goals, and make sure what's important to you is protected!

 

Content source: iii.org

 

 

Posted 10:00 AM

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013


View Mobile Version
Facebook
Twitter
LinkedIn
© Copyright. All rights reserved.
Powered by Insurance Website Builder