It is important to ensure your disability insurance is up to date. Nothing is worse than having a claim only to find out your benefits are not sufficient.
To keep your disability insurance benefits up to date with your needs, here is a guide to help you:
1) Policy Anniversary. Every year the company will send you information about your policy. It is important to review your policy on your policy anniversary to see if any changes took place. If you are paying on a graded or increasing scale, your premiums will increase each year. It is important to be aware of this change so you can budget the new premium. If your policy has a future benefit increase rider on the policy, the benefits and premiums will increase at the policy anniversary.
2) Job Change. If you have changed your job or occupation, it is critical to review your disability insurance. If your income has decreased, you do not need to modify your benefits. The policy will still pay you at your benefit level as long as you continue to pay your premiums. With your new job, it is important to review if your new employer is offering a group disability insurance policy. Familiarize yourself with these new benefits. What is their definition of disability? Does it require you to be totally disabled? If your employer is paying the premiums, the benefits may be taxable to you. Take into consideration your new income, employee benefits and existing disability insurance to ensure your coverage is adequate.
3) Life Change. If you get married, have a child or are getting divorced, it is important to evaluate your disability insurance to ensure your benefits are enough to cover your needs. Life changes can have an impact on your budget. Review your monthly fixed expenses to evaluate if your coverage is still adequate.
4) Change in Health. If you have an adverse change in health, it is important to find out if/when you can increase your coverage without medical underwriting. Some companies allow you to increase every year and some every three. Look at your policy and consider increasing your policy at each opportunity.
For more information about updating, evaluating and reviewing your disability insurance or to request a quote, please contact Set for Life Insurance today!
