Disability Insurance
What is Disability Insurance?
Simply, it is benefits paid to you when you can’t work because of sickness or injury. There are short-term and long-term benefits. The amount provided may be a percentage of income or a set dollar amount. The policy defines how much you will be paid, how soon you may receive payments after becoming disabled, and when they will end. The benefit period may depend on the cause of your disability. The longer the benefit period, the higher the premium will be.
Total Disability Definition
You should be aware of the definition of disability before you purchase a policy. The three coverage types are (1) Own Occupation, (2) Income Replacement, and (3) Gainful Employment. If you may be able to work in another, less demanding occupation, you may be considered totally disabled with Own Occupation coverage but not disabled under a Gainful Employment policy.
Some Reasons for Denying Payment
Often, a claimant’s own physician’s records may fail to substantiate a disabling claim. The doctor may not have noted all complaints, symptoms and findings. Also, the IME (Independent Medical Examiner) may find that you are not disabled based either upon an examination, or sometimes based upon a review of your medical records. Obviously their "Independence" is questionable since they are paid by the insurer. If you have been denied benefits, it could be detrimental to file your own appeal without experienced counsel to represent you.