Personal Disability Insurance

Personal disability insurance can provide the most comprehensive coverage available. It is, however, more expensive than group coverage offered by employers. There is a balancing that you need to do to decide which kind of income protection insurance you can afford versus which kind you think you should have.

A major difference between individual and group disability insurance is that personal disability insurance may consider all kinds of income--bonuses, overtime, pension contributions. Group policies usually only take base salary into account, and they end when you resign from the company. Your individual account follows you.

Look for Insurance Now

It is extremely important that you obtain good coverage now, when you are healthy and have a reasonable income. It just makes sense that if you wait until you need it--meaning, you are disabled--insurers won't offer any policy. You will not qualify if you presently have a disability, or are too near age 65.

Other exclusions will give you a better idea of what "disability" means to insurance companies. If you are pregnant--or are going to be pregnant soon--you will not qualify. Being unemployed is a disqualifier; you must have a good income, at least $18,000 a year. If you must carry a weapon in your occupation, you are not eligible. Obviously, if you have a current medical condition, you cannot get insurance.