Definition of disability
When determining whether the insured is qualified to resume work, be sure to take note of their education, experience, and past earnings. Many policies provide for an initial own occupation definition of disability, for a specified period of time, after which a different definition of disability applies.

Partial or residual benefits
When the impairment to the insured only allows them to perform a portion of his or her duties partial or residual disability will benefit. Also it may pay benefits if the insured’s income is reduced because of disability by a certain amount from what they made before their impairment.

Cost of living adjustment
If there is a cost of living adjustment (COLA) there will be a change in benefit payments after disability has occurred.

Cancelability and renewability of policy
Know whether your policy is noncancelable or guaranteed renewable. Noncancelable means the policy cannot be canceled, cannot change the policy provisions, or increase policy premiums after they have issued the policy as long as the premiums are paid on a timely basis.

Waiting and elimination period
Is the waiting or elimination period appropriate for the insured’s circumstances? Commonly available periods may include 30, 60, 90,180, and 360 days. Naturally, the longer the elimination period one selects, the lower his or her premium payments will be. However, a person’s needs, cash reserves and income sources should be the deciding factors in selecting proper elimination/waiting period.

Benefit period
Whenever possible, you should elect a long-term benefit. This is because a long-term medical disability can be financially devastating. Some companies offer lifetime benefit periods, but periods as short as 24 months to 60 months are also available.

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