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Here are some things to look for when reviewing long term disability and short term disability plans.
Definition of disability.
Some types of policies pay benefits only if you are unable to perform the duties of your normal occupation, while others will pay only if you cannot work in any job at all.
Payment trigger date.
Other policies will allow you to decide when the payments begin. You can choose a shorter or longer waiting period at the time of your application.
Extent of disability.
Some policies require that you be completely disabled before payments begin. Other policies pay out for partial disability for a limited time, but most often only if the partial disability follows a period of total disability for the same cause.
"Residual" benefits.
Residual benefits can help bridge the difference in your income if you are able to work, but are limited in your responsibilities due to your disability.
Presumptive disability.
Other policies will pay some benefits if you are still able to work but still have loss of sight, speech, hearing, or use of limbs.
When payments begin.
You can choose to begin getting disability payments anywhere from 31 days to the first six months. The longer you wait for a payment start date, the less your premiums will be.
Length of coverage.
Usually, coverage will pay you for two years, five years, or until you turn 65. The longer you receive payments, the more your premium will be.
Keeping pace with inflation.
You can also purchase a cost-of-living adjustment (COLA) to add to your basic disability insurance policy. This provision generally increases payouts by 4 to 10 percent each year.
Waiver of premium.
Most policies contain a "waiver of premium" provision so that you do not have to pay premiums if you are disabled for 90 days or longer.
Source:
National Organization on Disability
Related Article:
Disability Insurance Overview >>
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