How Does Disability Income Insurance Work?

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Disability income insurance is often referred to as "DI" insurance. Learn how disability income insurance works with help from a dedicated insurance professional in this free video clip.

Part of the Video Series: Insurance Help
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Video Transcript

Hi, my name is Doug Levi, I'm principal agent and owner of Strategic Insurance Services and today I'm going to talk to you about how does disability income insurance work. It's often referred to as DI insurance and the first you're going to have is a benefit amount and that's simply how much money are they going to pay me in event of me becoming disabled. The second thing you're going to have is an elimination period, this elimination period you can think of as similar to a deductible. So I've got my benefit amount, let's say it's two thousand dollars, I become disabled. I have to be certified by a doctor that I'm not going to be able to work for say six months or more, that's part of the claims review process that the carrier would do with you. After that, and they say okay I am disabled, it's legitimate, my elimination period kicks in, that could be thirty days, sixty days, ninety days or more. So what that is, that's that time period that the claim has been opened up, that I'm going to have to be without actually receiving the benefits from the insurance company. Again, think of it very similar to maybe a deductible on your auto insurance. I get into an accident, I got a five hundred dollar deductible, carrier's going to require I pay the first five hundred dollars, well with disability insurance you got this elimination period which says the first thirty days or first sixty days or first ninety days I'm going to have to insure. The third thing you're going to have is, how long is the period going to last. Is it going to go till I'm age sixty-five which is very common. Is it going to go for five years? Is it going to go for ten years? There's all sorts of different options with that. I would recommend obviously, the longer the better. Statistics are about, you're about two-thirds more likely to become disabled then you are dying, I see so often clients are under insured in this area. We strongly recommend disability insurance at our agency. If you'd like more information on disability insurance you can go to our website which is: This has been, what is disability income insurance. My name is Doug Levi, I'm with Strategic Insurance Services.


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