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Posts Tagged ‘disability insurance’

  1. Disability Insurance, Part Two


    March 26, 2012 by Milton Jones

    In the last column, we discussed the risks of Premature Death, Old Age, and Disability. One of these three gremlins is sure to take away your earning power, sooner or later. The Insurance & Health Insurance Industry offers policies to protect against all three. Life Insurance pays best when you die before your time. You can get an annuity policy, or utilize certain types of life insurance policies to provide retirement benefits. Finally, some companies offer policies that provide disability income. From the Insurance Company’s viewpoint, disability is the toughest of the three to cover. When we think of disability, the stereotype is to visualize someone paralyzed and bound to a wheelchair. That extreme example is rela- tively easy to insure against, because it’s relatively black and white. But things like stress, fibromyalgia, or back pain are much more subjective. Stated differently, it’s sometimes hard to know whether it’s really disabling or just something to put up with. With disability income policies, the definition of disability clause is really critical. A typical definition goes something like this: total disability is deemed to exist when the insured person is unable, by reason of sickness or injury, to perform all the important …