When you buy disability insurance, you might be led to believe by your broker advisor that all types of disabilities are covered by the insurance and you don’t have to worry about a thing. The reality is quite different. Nearly every disability insurance plan includes some specific limitations or exclusions. This is added by the insurance provider to reduce the risk of paying a claim for an illness and/or injury caused by risky activities.
When you apply for disability insurance, there will be a screening process. Apart from the routine health tests, the qualifying process will also include an interview by your broker agent advisor to determine if you indulge in any high-risk activities such as mountaineering, scuba diving, or any similar acts that can result in a major accident.
Some exclusions are imperative but you must always read between the lines and the fine print to make sure that you are not deprived of a claim that you are entitled to in the name of exclusions. Most disability insurance plans will add exclusions that do not provide cover for specific conditions, or disabilities resulting from certain activities.
Some Common Exclusions Are:
- Injuries that are self-inflicted
- Injuries from criminal activities
- Acts of war
- Rebellion acts
- Civil disobedience
- Operating a motor vehicle under the influence of alcohol
Are The Exclusions Permanent?
Most of the exclusions written in the disability insurance plan are permanent. Some others may be included under reviewable after a specific period. What must be borne in mind is that exclusion does not necessarily mean a loss of benefits. If there is no pre-existing condition and the disability is due to an accident, you will still be eligible for the benefits.
What Are Disability Insurance Limitations?
Apart from the exclusions, all disability insurance will also have some limitations. These are similar to exclusions but differ in the manner of their application. Limitations will not restrict coverage for specific conditions, but the policy may limit the benefits available in some circumstances. Just like exclusions, some limitations are common to all disability insurance policies.
Some limitations are added based on the information gathered from the applicant during the underwriting process. The most common limitations include disabilities occurring due to mental illness or psychological conditions such as stress and anxiety.
It is difficult for a common person with little knowledge about insurance plans and schemes to get a clear idea about how these exclusions and limitations work. They may have some disability concerns. That’s why it is important to get disability insurance quotes from different insurance companies so that you can compare the policies in these aspects as well and make the right buying decision.
Do All Disability Insurance Plans Have Modifications?
All companies draw up their own terms and conditions when it comes to modifications to exclusions and limitations. While one provider may allow full coverage even when there is a specific pre-existing condition, another one may impose conditions for full coverage or may even not offer comprehensive coverage under such conditions.
The best way ahead is to use the services of an independent insurance agent representing many insurance providers. They can provide you a number of choices and options while a captive agent will be able to offer just one plan.