Protect your most valuable asset — Your income.
Frequently Asked
Disability Income
Protection Questions

Amount
When thinking about an income protection plan, the first consideration is the amount of coverage you need. Most insurance carriers will insure about 60% of your gross monthly earnings. Click here to see how much monthly benefit you can qualify for.


Waiting Period
The waiting period is the amount of time that must have elapsed before income benefits can begin. This is also known as an elimination period. You will depend on your savings and investments for income during the waiting period. Once you have satisfied the waiting period and you are eligible for income benefits, they will be paid to you at the end of your first month on claim. Waiting periods can be as short as 30 days and as long as 730 days (2 years). The longer your waiting period the lower your premium will be. The typical waiting period is 90 days.


Benefit Period
The benefit period is the maximum length of time that the policy will pay you income benefits during a disability. The benefit period can be as short as one year and as long as to your age 67. 2, 5 and 10 year benefits are available with many carriers. The typical policy has a benefit period to age 65.


Definition of Disability
The legal definition of disability in the contract is the most important feature of a disability policy. The definition specifies the conditions that must exist in order for you to be considered disabled and entitled to the monthly income benefits in the policy. There are many different definitions of disability and they affect the pricing of many contracts. The best definition available is an “own-occupation” definition for the entire benefit period. Other definitions include the “own-occupation” definition for a limited period of time such as 2 years or 5 years. A more liberal definition of disability results in a more expensive premium. A more restrictive definition conversely results in lower premiums. When considering the definition, we typically recommend “own-occupation” definitions for our clients.


Occupation
Your occupation is the primary determinant in your premium structure. Occupational classifications reflect not only the hazards of accidental injury and occupational diseases, but also social, environmental, and economic factors which can influence claim experience. To assure your best interests at the time of claim, it is important that your occupation be properly classified. All classifications are subject to insurance carrier approval. Also, you must be working full time (30 hours or more a week) at time of application.


Title and Duties
In order to classify you, your occupation, including title and exact duties, must be fully and accurately described on the insurance application. If you have several duties or more than one occupation, the duties or occupation having the greatest hazard determines your classification.


Occupation
Rating
Classifications

5AP
Those eligible for this class are:

  • actuaries (FSA),
  • architects,
  • attorneys (income $75,000 and up),
  • CPAs,
  • engineers,
  • certain corporate executives.
To qualify, the corporate executive must have duties limited to office and consulting only, have earned $75,000 or more the last three years, have a minimum of travel and be employed by a financially sound firm that has 25 or more full-time employees.


5A
This class includes:

  • actuaries (ASA),
  • college professors
  • investment bankers
  • pharmacists,
  • certain attorneys, and
  • certain corporate executives.
In order to qualify, a corporate executive must be employed by a well established, financially sound company with 25 or more employees with primarily office duties, minimal foreign travel and a minimum salary during each of the previous three years at a minimum of $60,000. Such executives must be compensated on a salary basis as opposed to self-employed or commissioned executives.


4A
This class includes:

  • investment brokers
  • mortgage bankers
  • recruiters/headhunters
  • school teachers
  • executives and managers not qualifying for 5A coverage who are employed by a well established, financially sound company; have primarily office duties which require little or no selling and minimal foreign travel; and have been salaried during the last three years of $40,000. (The majority of the applicant's income must be derived from a salary as opposed to income derived from self-employment or commissions.)
Most self-employed persons do not qualify for Class 4A.


4A Medical Occupation Class Codes

Audiologists

Neurologists (no surgery)

Cardiologists

Internist

Dermatologists

Nurse Practitioner (with Degree)

Family Practice

Pathologists

Gastroenterologists

Pediatricians

Genetics Physicians

Radiologists

Hospital Administrators

Urologists

3AP
This class includes individuals involved in technical and sales-oriented occupations. Individuals who are self-employed, commissioned and those whose income is subject to fluctuation. Managerial or self-employed persons whose regular duties include manual or machine operations are excluded from this class.


3A
This class includes certain medical occupations. Included in class 3A are: surgeons, anesthesiologists, emergency room physicians, dentists, medical assistants, medical technicians, mid-wives, podiatrists, X-ray technicians.


3A Medical Occupation Class Codes

Anesthesiologists

Mid-wives

Dental

Nurse Anesthetist

Emergency Room Physicians

Podiatrists

Medical Assistants

Surgeons (all specialties)

Medical Technicians

X-Ray Technicians


2A
This class includes managers, supervisors or self-employed individuals whose regular duties require limited physical activity. Examples include electrical or plumbing contractors as well as technically trained foremen and supervisors.


2A Medical Occupation Class Codes

Naturopath

Physical Therapists


A
This class includes occupations involving skilled work with light manual duties requiring dexterity as opposed to physical strength. These individuals are exposed to very little occupational hazard.


B
This class includes occupations requiring heavy manual duties where there are accident and environmental hazards. There is generally a high rate of instability of employment or salary and unskilled labor within this classification.


No
Generally not insurable.