If you’re ready to investigate disability insurance, here are steps to find the right plan to protect you and your family. When you’re looking for the right income protection it’s important to understand coverage terms, whether it’s provided by your employer or acquired individually.

Understand the Types of Disability Insurance

• Short-term disability insurance: Provides coverage for a limited time (typically 3 to 6 months) and offers peace of mind during temporary health setbacks.
• Long-term disability insurance: Offers coverage for an extended period, potentially until retirement.

Research Providers

• Compare policies, coverage options, and premiums from different providers. Look for customer reviews and ratings to help gauge provider reliability and service quality.
• We recommend talking with our CDIA member companies, which are experts in income protection insurance, products, and services. Their insights can help tailor coverage to your unique needs. 

Choose Coverage Amount

• Decide how much of your income you want to replace (typically 60-80% of your pre-disability income). This percentage is crucial for maintaining your standard of living.
• Consider any additional sources of income you may have, such as savings or other insurance. Factor in potential income from investments or side gigs that could supplement your disability benefits.

Consider Waiting Periods

• Determine the elimination period (the time you wait before benefits begin). A longer waiting period usually means lower premiums, but ensure you can cover expenses during that time without financial strain.

Review Policy Details

• Examine the definitions of disability (own occupation vs. any occupation). Understanding these terms is vital since they affect eligibility for benefits and the likelihood of receiving them.
• Check for exclusions and limitations in the policy. Be aware of any activities or conditions not covered which could impact your claims.

Get Professional Advice

• Consider consulting with your employer, a financial advisor, or an insurance agent to help you create a plan for your needs. These professionals can provide personalized advice based on your financial situation and goals.

Apply for Coverage

• Complete the application process, which may include a medical exam or health questionnaire. Prepare for an exam by being well-rested and informed about your medical history.
• Be honest about your health history and include all medications to avoid claim issues later.

Review and Update Regularly

• Reassess your insurance needs periodically, especially after significant life events such as marriage, children, and career changes. These events can dramatically alter your financial landscape and require coverage adjustments.
• Update your policy as your income and expenses change. Regular reviews ensure you remain adequately protected without overpaying for coverage you no longer need.

Read the Fine Print

• Before signing, carefully read the policy to understand your rights and obligations. Pay attention to renewal terms, premium increases, and the claims process to avoid surprises in the future.