Are there disability insurance policies that consider income lost instead of occupation?
Some insurance companies offer disability insurance policies that define disability in terms of income actually lost as a result of the disability rather than in terms of a particular occupation. Under these terms, if an insured becomes disabled benefits are paid to the extent that the insured suffers a loss of income over a predetermined threshold such as 20%. In this example, if an insured suffered a disability benefits would begin after income lost exceeded 20% based on his/her earnings prior to the qualified disability.
Related Questions
- The terms "non-cancelable" and "guaranteed renewable" are often used when referring to disability income insurance policies. What do these terms imply, and how do they differ?
- The terms "noncancelable" and "guaranteed renewable" are often used when referring to disability income insurance policies. What do these terms imply, and how do they differ?
- Are there disability insurance policies that consider income lost instead of occupation?
