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General Disability Insurance Features:
- Replacement income if you become ill or are injured.
- Disability insurance varies, depending on your occupation: the
more dangerous your job, the higher the premiums and
limitations.
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The amount of coverage usually can't be more than 2/3 of your current
earnings.
- The paid benefits from an insurance claim are tax free.
- Benefit period can vary, anywhere from 2 years, up until the age of 65.
- After 65 coverage may continue, although the insured must continue to
work. Coverage may be modified.
Disability benefits are classified as either short term or long term:
- Short term DI (otherwise known as weekly indemnity) provides income for the
early part of a disability. A common length of time for short-term DI is two
weeks up until 150 days.
- Long term DI replaces lost income for an extended period, and goes into effect
after the short term DI has ended. It often ends after five years, or when the
covered person turns 65, depending on the policy.
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