There are two types of disability insurance policies: Short-Term Disability (STD) and Long-Term Disability (LTD). Short-Term Disability insurance policies have a waiting period of 0 to 14 days with a maximum benefit period of no longer than two years. Long-Term Disability insurance policies have a waiting period of several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life.
Disability insurance policies have two different protection features that are important to understand. Non-cancel-able means the policy cannot be canceled by the insurance company, except for nonpayment of premiums. This gives you the right to renew the policy every year without an increase in the premium or a reduction in benefits. Guaranteed renewable gives you the right to renew the policy with the same benefits and not have the policy canceled by the company. However, your disability insurance company has the right to increase your premiums as long as it does so for all other policyholders in the same rating class as you.
In addition to the traditional policies, there are several options you should consider when purchasing disability insurance in Phoenix, contact us today to discuss the other available options.