Non-Cancelable and Guaranteed Renewable Disability Policies
Have you ever thought about how you would pay for your mortgage, rent, car note and other bills if you were unable to work? Most workers do not have enough savings to support them beyond three months, sometimes less.
Disability insurance can help you stay afloat while you're not working, or if you are never unable to return to work. An individual disability insurance policy has portability, which means it can transfer from one job to the next. Disability insurance policies are divided into two types, non-cancelable and guaranteed renewable.
A non-cancelable policy is characterized by premiums that never increase. Also, the insurance company cannot cancel the policy unless you stop making payments. You can renew your policy every year with no increases in premiums or reduction of benefits.
A guaranteed renewable policy can have increases in premium for the same class of policyholders. The insurance company cannot cancel your policy or decrease your benefits. The only way your guaranteed renewable policy can be canceled is if you do not pay the premiums.
Disability insurance is a great way to protect your assets. To get multiple competing quotes from insurance companies in your area, fill out the free online form.
Sources
- What are the types of disability insurance? Retrieved April 29, 2008, from http://www.iii.org/individuals/disability/types/
- Key Terms. Retrieved April 29, 2008, from http://www.lifehappens.org/disability-insurance/key-terms
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