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Purchasing a disability policy can be a smooth process if you have the right tools. Here are some steps to help you:
- Find a knowledgeable broker who specializes in disability insurance.
Note: some websites will assign you to a broker at random, who may or may not specialize in disability insurance. At KF Financial, we are experts in disability insurance.
- Do your research. Know what to look for in a policy.
Realize that your decision shouldn't be based on the best "quote" since lowest cost does not necessarily mean the best policy for you. Better yet, look for the best fit with the right policy and right company/broker.
Specialization. Be sure they specialize in disability insurance and are familiar with the marketplace.
Knowledge. Look for a broker with credentials such as CLU, ChFC, LUTCF, REBC or RHU. These are some of the most prestigious professional designations in the insurance field. To obtain them, brokers must pass a serious of classes. Having these credentials also shows that the broker has a high level of commitment and credibility to clients and to the industry.
Objectivity. Work with a broker. Brokers are not employed by any particular company and are therefore more likely to be objective. They will also likely have more products available. As a result, brokers work on your behalf and in your best interest. They tend to be more abreast of the marketplaces and more aware of all the policies available.
When you are ready to request information, ask:
- How is disability defined? Is the policy an own-occupation contract? If so, for how long?
- How much coverage can I qualify for based on my income and group benefits?
- Are there any exclusions?
- Who will help me if I have to file a claim?
- Are benefits available for total disability? For partial disability? Are there residual benefits?
- Is the policy non-cancelable, guaranteed renewable, or conditionally renewable?
- Is there an option to buy additional coverage, without evidence of insurability, at a later date?
- Does the policy offer an inflation adjustment feature? If so, what is the rate of inflation? Is it a simple or compound rate of interest?
Medical conditions or other extenuating circumstances may require an alternative approach. Please let us know about special situations, so that we can explore your options.
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