Private Disability Insurance

Private disability insurance is an excellent choice for those who need the maximum in income protection and can handle the premiums. This kind of coverage always has better benefits than group plans, for instance, but it is also more costly. Special policies are available for professionals, business executives, and small business owners.

Personal disability insurance protects your greatest asset--your ability to earn a good income. A loss of income is an event that few can weather without help, and good coverage not only provides vital assistance, but alleviates anxiety about the future. Without the financial aid from private disability insurance, for instance, a small business owner might have to close down operations.

Definitions of "Disability"

One of the most important elements in an insurance contract is the definition of "disability." Some companies have several different plans, all dependent on how disability is defined. The least expensive policy covers your basic needs; after two years, you have less control over whether you must return to work in another occupation.

"Own occupation" is a desirable option, for it pays as long as you cannot participate in your own occupation, even if you can hold down another kind of job. Another type of policy integrates your earnings with other earnings, that is, the benefits of the policy are offset by other sources of income. It pays to scrutinize various plans from various companies in order to get the best coverage you can afford.