There are a number of customizing features--some confusing, some expensive--that can be added to my personal coverage. Besides my insurance agent, can an attorney help sort fact from ploy?
Yes. Though your insurance agent will undoubtedly trumpet a menu of "juicy" options, some lushly priced, small business owners have special concerns and financial obligations. Before committing, talk with an attorney or accountant first who can scrutinize the advantages and drawbacks of offerings to help you avoid the ulcers.
A partial list of the most common "bells and whistle" features (called "riders" in insurance language) are:
(1) CPI cost of living adjustment (COLA): this automatically provides inflation protection and increases your coverage after a disability occurs.
(2) Guaranteed physical insurability: you can buy extra disability insurance in the future without passing medical muster.
(3) Residual benefit: this pays you partial benefits while you are easing back into work on a part-time basis without sacrificing coverage.
(4) Automatic increase in benefits: this feature automatically boosts your monthly benefit by a specified percentage before a disability occurs.
(5) Social Security: this option pays you what social security disability does not if you fail to get Social Security disability.
(6) Refund of premiums: this option refunds some of your premiums if you go10 years without filing a disability claim. Not all states allow this type of rider, because sometimes it is a rip-off.
(7) Lifetime benefits: your disability payments continue beyond age 65.
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