Questions to Ask Before Buying Disability Insurance – The New York Times

Given how confusing disability insurance is, my column on the odds of needing it didn’t have room to list all of the questions you should ask an insurance company before signing up for a policy. (If you get disability insurance for free from your employer, making similar queries is crucial to understanding the limits of the coverage.)

Besides, there’s nothing like real world experience to inform such an undertaking. So below, I’ve taken a stab at starting the list with a few dozen questions. Those of you who work in the industry or have purchased this insurance (and filed claims) will undoubtedly have additions and revisions.

Here is a short list:

  • What percentage of my income will you replace if I become disabled?
  • Will you cover commissions or bonuses on top of a base salary?
  • What about 401(k) or other retirement contributions?
  • Can the payout go up as my income goes up in the future?
  • Can it go up as the cost of living increases?

Read the entire list of questions here via Source: Questions to Ask Before Buying Disability Insurance – The New York Times

Posted in Disability Insurance.

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