There’s a lot of insurances out there: health, homeowners, life insurance, etc. There’s so many, I am sure your eyes roll. As one of my clients said to me, “John, I don’t want to be insurance poor…” He’s right. No one has to. However, I bet there is one insurance you don’t have. I regard it as the most important insurance (after health insurance). Everyone needs it. I honestly can’t think of someone who would not. Even millionaires need it. What do you think it is? Dental insurance? No. Long-term care? Well, good answer, but that is not it. What? Pet insurance??? NO! Life insurance? You are close, but not quite. The most important insurance you don’t have (or enough of) is disability insurance. That is right. In this article, we discuss the truths and myths of disability insurance and why it is the most important insurance you don’t have.
As they say, “It’s all in a name.” In this case, the definition of disability in your policy determines whether or not you will receive benefits from your claim.
The definition of disability is the “heart” of your policy. It is critical you understand how the carrier views your disability. The carrier pays (or not) the disability benefit based on this definition.
Let’s see an example of how important it is to understand your policy’s definition of disability.