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Disability Insurance
Disability can be more disastrous financially than death. If you are disabled, you lose your earning power. You still have living expenses and, often, huge expenses for medical
care. When purchasing disability insurance, ask:
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How is disability defined? Some policies consider you disabled if you are unable to perform the duties of any job. Better plans pay benefits if you are unable to do the
usual duties of your own occupation.
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When do benefits begin? Most plans have a waiting period after an illness before payments begin.
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How long do benefits last? After the waiting period, payments are usually available till you reach age 65, though shorter or longer terms are also available.
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What dollar amount is promised? Can benefits be reduced by Social Security disability and workers' compensation payments? Are the benefits adjusted for inflation? Will the
policy provider continue making contributions to your pension plan so you have retirement benefits when the disability coverage ends?
Be sure to shop around to get the best price for the maximum coverage and don't be afraid to ask a lot of questions before you choose to purchase your coverage.
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