The best disability insurance policy is the one that will pay you the most benefits under the most amount of circumstance. These are some of the factors that would make this policy “perfect.”
- It should have an Own-Occupation definition of disability. This means that you would be considered disabled if, because of accident or illness, you could not perform the major duties of your occupation, even if you choose to work in another profession.
- It should have a Recovery Benefit. A recovery benefit means that if you return to work, even if recovered and fully released from medical care, and you have a loss of income benefits would be paid on a pro-rata basis.
- It should have a Cost of Living or Inflation rider so your benefits would keep up with inflation, should you become disabled.
- It should have an option that allows you to purchase additional coverage, as your income allows, without having to prove medical insurability.
- It should have a rider for catastrophic coverage, which would pay an additional benefit to cover any costs associated with assistive living services.
If your policy contained these benefits and it was with a highly rated, financially sound company, it would be a “perfect” disability policy.