Let’s assume you want an accident and illness disability income (DI) insurance policy to cover you to age 65. Also assume there is a 90 day elimination period (waiting period) before benefits begin.
You will want a DI policy that offers a liberal definition of total disability for your occupational class. Also, you will want a policy that offers a partial or residual disability rider (you’re disabled but can still work to some extent.) Other riders to look for are a cost of living rider and a Future Purchase Option (FPO.) The FPO allows you to increase coverage down the road without medical underwriting. The FPO will be subject to the contract’s definitions and also financial underwriting.
It is important to note that not everyone qualifies for DI insurance. As most DI policies require medical underwriting, it is possible that modifications and exclusions may be added to the contract, or denied outright. As an example, an individual taking medication for anxiety and depression, along with regular visits to a chiropractor for back pain will likely receive a modified contract. In this example, mental health issues may be excluded as well as back issues, and the underwriter may modify the benefit period and/or waiting period.
To avoid surprises during the application process it is strongly recommended that you and your DI broker discuss any potential hurdles beforehand. Mention the back pain, the anxiety, etc., so that the broker can give you an idea of how things are likely to play out. The broker is not an underwriter, but a seasoned pro will have a very good idea of what to expect before submitting a Disability Income insurance application.