Disability Insurance FAQS

What is an “own occupation” definition on an
individual disability insurance policy?

The own occupation definition protects your ability to work in your medical specialty. This provision defines a disability as the inability to perform the material and substantial duties of your occupation due to injury or illness.

What are the residual disability benefits?

A residual disability benefit provides a partial benefit in the event that you suffer a partial disability. The percentage of the policy benefit paid is proportionate to the percentage of your loss of income.

What is the policy elimination period?

The policy elimination period is the time period you choose before the disability benefit is paid to you. This time period generally varies between 30 days and 730 days; with 90 days usually being the most cost efficient elimination period.

What is the policy benefit period?

The policy benefit period is the time period you choose for the disability benefit to be paid to you. The benefit period can vary from 2 years up to age 70. The most common benefit period is to age 65.

Are disability insurance benefits considered taxable income?

If you pay the policy premium with after-tax dollars, the monthly benefit will be tax free. If you deduct the premium or your employer pays the premium, the benefit can be taxable.