Disability Insurance Company
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A disability insurance company is a company that sells disability insurance policies to interested parties. Disability insurance is something you show definitely look into getting if you are self-employed. Many people have disability insurance through their group health plan at work and therefore are covered if they became injured or ill while those who work for themselves are vulnerable when it comes to this. Speaking to an agent from a disability insurance company is a good idea for entrepreneurs who have struck out on their own.
A disability insurance company representative will be able to sit down with you and walk you through the process of applying for disability insurance and should be able to answer all of your questions. When you are shopping for a policy that is right for you be aware that not all disability insurance policies are the same. What one disability insurance company may have to offer you is different from what another company has to offer. Shop around just as you would for anything else.
There are questions you should ask an agent of the disability insurance company in order to determine if the company is a good fit for you. First of all how long does the disability policy cover you for? If you injure yourself or fall ill will it cover you for up to a period of 36 months or longer and/or will you be covered until you reach the age of 65? Be aware that not all companies classify the term for disability insurance in the same way.
It is important to determine how a disability insurance company defines disability. Are you deemed disabled if you are unable to work at your present job or are you deemed disabled if you cannot work in an occupation that you have education, experience and/or knowledge? The discrepancy between the two is small but yet it is worthwhile to take note.
Not all disabilities are full disabilities. Some disabilities allow a person to work part time or on a sporadic basis. Examples of these would be diabetes or MS. Find out from the disability insurance company if they offer the option of partial disability or not. If you can work part time you do not want to be disqualified for disability benefits if the company does not provide this option.
Are the monthly premiums you are quoted guaranteed or can they be raised? For example if you suddenly fall into a high-risk category for a disability or if you begin smoking or drinking excessively will your premiums be put up?
Does the company offer a “Return of Premium option” that will allow you to get back the money you put into your plan if you never need to use it? Some companies allow you this option after 20 years while others do not. In some cases you can take the premiums you paid into and turn them into an RRSP or something to that effect.
Does the insurance company have a “Cost of Living Rider”? Remember that the amount of money you earn on a monthly basis today may not be nearly enough ten or twenty years due to cost of living considerations. These things all make a difference.
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