Disability Insurance Broker
|
 |
A disability insurance broker is an individual who acts on “behalf of the insured to negotiate the terms and cover provided by the insurer in the insurance policy.” Buying disability insurance is a good idea for everyone who works and a disability insurance broker can not only explain the process that goes into disability insurance but he or she can also provide as much information to you as you need and he or she can help you find the plan that best suits your budget and your individual requirements.
A disability insurance broker will describe the difference between short term (also called sick leave) disability and long term disability. He will also inform you of the variety of waiting periods you can choose from for your plan. Most companies offer waiting periods that can range from two months to three months to six months to utmost of a year or two. The longer a waiting period you choose the less you will pay in monthly premiums. The waiting period is the length of time from the time the disability starts to when the policy kicks in. Those with little if any savings cannot usually afford long waiting periods and therefore run the risk of paying higher premiums.
Another important item a disability insurance broker will discuss with a prospective policy holder is the difference between a non-cancelable and guaranteed renewable policy, a guaranteed renewable plan and a renewable policy that is deemed as conditional. A non-cancelable policy is by far the best choice for those who can afford it because your rates cannot be raised at the whim of the company. When rates are locked in at a certain price, this gives consumers peace of mind. A guaranteed renewable plan means that your coverage cannot be ended for no particular reason however rates are subject to go up at an insurance company’s discretion. In this way a policy holder is at the mercy of the company.
A disability insurance broker will likely need certain information about the person interested in applying for disability insurance such as your age, your present medical condition, your past medical history, what occupation you are involved in and perhaps some information about your personal activities. You do not have to be in a high risk type of work to require disability insurance and a qualified and knowledgeable disability insurance broker should make this known to you. Also regardless of your recreational pursuits, everybody needs disability insurance. A salesman requires disability insurance as much as a waitress does, or a writer or a top level executive. The sooner you purchase it the better so you will be covered long before an accident or illness makes itself a part of your day to day life on a weekly, monthly or yearly basis.
When it comes to a disability insurance broker trust your instincts but get recommendations and referrals from trusted confidantes if you feel it is in order. If you meet a broker who will not give you straight answers or who seems to evade questions, run, don’t walk away from the individual and look elsewhere. There are honest, hard working insurance brokers out there who put their clients need first.
|
