Professionals Disability Insurance is the best disability insurance available when properly designed. If the small details of the disability policy are neglected then the policy may not be exactly what the insured thinks they have.
This makes disability insurance a bit like a parachute: You only know if it will work when you actually need it! So how do you know if your professional disability coverage is good?
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One of the biggest ways is to make sure that you purchase private long term disability insurance. Group insurance disability plans are cost effective but do not match the quality of a customized private disability insurance plan. If you have group disability that is a good start but it is a very good idea to supplement it with a private plan that fills in the gaps (think of it as your back up parachute in case the first one fails).
Well designed professional disability insurance has several key features that are important.
The most important is the definition of disability provided in the contract. Without a good definition of disability a professional may be cut off their disability benefit even though they still can not do their own job! This is because they are able to work according to the definition of insurance.
A good professionals disability insurance policy will have a definition of disability that is worded so that if the professional is unable to do their own specific job due to illness or injury they will receive the disability benefit. Even if they are well enough to do other work. This is so critical.
Some other factors that must be considered by a professional are:
As a professional, your ability to earn an income is an incredibly important asset. Do you know if you have the right coverage?
If you were going skydiving you would want a professional to check your parachute. If you are a professional, you should have a professional insurance broker check your disability insurance policy!
Note: Always speak with a licensed insurance professional about your specific situation. This insurance information is general in nature and the policy wordings always take precedence. It is possible that there are errors and omissions in this website and www.canada-insurance-source.com, or its authors, take no responsibility.
Keep in mind that insurance licensing, legislation, and policies often vary by province and most certainly by country. Canada Insurance Source is a free information source. So use this site to gain a general understanding of insurance with your own area and situation in mind. Make sure you review the "please read" page. Always speak with a licensed insurance professional about your specific situation.
Always speak with a licensed insurance representative about your specific situation.
This site is general in nature and there may be errors or ommissions