Guaranteed Renewable – Guaranteed Renewable policies cannot be cancelled by the insurance company even if a change in the insured’s circumstances would make him or her a greater  risk.  Plus, the insurance company cannot make any changes to the provisions of the policy, or add restrictions.  When purchasing an individual disability policy it should be Guaranteed Renewable.

 

Non-Cancelable – Guarantees future premiums will not be increased.   When purchasing an individual policy it should be Non-Cancelable.

 

Presumptive Disability – Presumptive disability means that you are considered total disabled and eligible for benefits for the loss of sight in both eyes or the loss of two limbs.  The better contracts also presume total disability for the loss of hearing in both ears, loss of the power of speech, or the loss of the use of two limbs.

 

Other Benefits that can be added to an individual disability policy, but could also increase the cost:

 

Protection Against Inflation – A benefit that can be added that offers a cost-of-living adjustment for inflation during a long-term claim.

 

Automatic Increase Rider – Automatically increases monthly benefits for a specified period of time.  A typical increase is 5% compound.

           

Future Increase Options – Allows the insured to purchase additional benefit amounts without proof of insurability.

 

Capital Sum Benefit – Pays the insured a lump sum benefit up to 12 times the monthly benefit if the insured loses the sight of one eye with no possibility of recovery or has a hand or foot severed.  This benefit is paid in addition to the other benefits.

 

Rehabilitation Benefit – To help a disabled insured return to work, this benefit will pay some of the expenses incurred when the insured enrolls in an approved rehabilitation center.  This benefit is paid in addition to the other benefits.

 

Transplant & Cosmetic Surgery Benefit – Under this benefit, any disability arising from donating a transplant organ, improving your appearance or correcting a disfigurement will be covered by the policy.