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Disability insurance is sometimes referred to as income protection. It will protect your ability to continue to earn a living. If you become disabled by sickness or an accident, you will receive payments (based on your particular policy) from your insurance company, which will help you continue paying your living expenses such as rent, mortgage, car payments, food, insurance, utilities, medical expenses, and more. It can also pay for additional medical costs associated with your disability that medical insurance won't cover. What are the types of disability insurance that are available in Illinois ? INDIVIDUAL DISABILITY INSURANCE - Individual policies specify how much you will be paid, how soon after you are disabled benefits will begin, and when benefits will end. Policies generally provide replacement of 50 to 70 percent of income. The length of time for which you may receive benefits can depend on whether accident or illness caused the disability. Benefits begin following a waiting period, which is the period between the time you become disabled and the time your benefit payments begin. An individual policy will move with you throughout your career.

A large group (defined as 51 or more employees in Illinois) health insurance policy is medically underwritten at the time of purchase, with rates based on employee participation and prior claims experience. Employees are not generally asked to fill out a medical questionnaire prior to obtaining coverage. Large group policies in Illinois do NOT have to be offered on a guarantee issue basis. The health insurance company bases annual premium changes for large employer groups primarily on the claims experience of the group in past years, as well as any overall increases in the cost of providing health insurance coverage. An example of such costs would be changes in laws that may impact operating expenses. Federal law mandates all large group contracts be renewed every year at the employer's discretion, unless there is non-payment of premium, the employer has committed fraud or intentional misrepresentation, or the employer has not complied with the terms of the health insurance contract.

Pays you a monthly benefit after a waiting period (usually 90 days from the time you became disabled) for a maximum length of time (usually up to 2 years) if you become disabled. This rider can cost more than the original life insurance death benefit. You may want to compare this cost with a separate disability policy to see if it is worth the extra premium. Your policy should also have the following information Health rating (preferred, standard, table rating) and tobacco use class (smoker/nonsmoker) Premium schedule Death benefit for each policy year Options for payment of death benefit (lump sum or annuity) Other things you need to know when buying Illinois life insurance. Make sure that you fully understand any policy youâ??re considering and that you are comfortable with the company, agent, and product. Most states require insurers to provide a buyerâ??s guide to explain life insurance terms, benefits, and costs. Always answer questions on your life insurance application truthfully. Most states allow the insurer to cancel or rescind a policy within the contestability period if there is fraud or material information omitted from the application.

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