Understand Grace Period, Elimination Period ,Benefit Period and Partial Disability

2008-10-06T13:41:00.000-07:00

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As we mentioned in the other articles, the main purpose of disability insurance is to to replace an individual's income should they be unable to work, helps to balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality as a result of either an accident or a sickness. In this article, we will discuss Grace Period, Elimination Period ,Benefit Period and Partial Disability of disability insurance policy.
Understand all above definitions are very important for people purchasing disability insurance. Don't wait until accident or sickness occurred then find out that your insurance policy already lapsed, because the grace period had expired, or you have to wait 180 days before the disability benefit will be paid, etc.

1. Grace period
Normally the grace period is 30 days if the scheduled premium is not paid. Your policy will be inforced and missed payment will have to repaid within 30 days or policy will lapse.

2. Elimination Periods or waiting periods
This is the number of days that the insured must be disabled before they begin to receive benefits. Many insurers offer a variety of "Elimination Periods" such as 30, 60, 90, 120, 180, 365 and 730 days. The most common periods are 30, 60 or 90 days. The longer the elimination period the lower the premium since the insurer must begin paying benefits at an earlier date.

3. Benefit Period
The benefit period is the length of time disability benefits will be paid. Benefit Periods can range from 2, 5, 10 years or even to age 65 or lifetime. The longer benefit periods the higher the premium, since the insurer must potentially pay for a longer time period.

4. Partial Disability
Some policies contain provision for the payment of Partial Disability benefits. If
a) loss of time normally spent working
b) inability to perform some of their duties are the factors that must be present before the Partial Disability will be paid.
The amount payable is normally a flat 50% of monthly benefit the period for which the benefit is paid is usually limited to 6 months.

I hope this information will. If you need more information of the above subject, please visit my home page at:
http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
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Disability Insurance 08

Understand Grace Period, Elimination Period ,Benefit Period and Partial Disability