Contact Us Today!

NavStar Financial Services

219 Williamson Rd.
Suite 2202
Mooresville, NC 28117

704 663 7482

NavStar Currents

Is Your Disability Coverage What You Think It Is?

Posted by Larry Jones on May 27, 2021 9:30:00 AM
Find me on:


When was the last time you took an 8 week vacation?

How about 10 weeks? How about 30?

"Man," you say, "my company wouldn't keep paying me for that long!" And you're right. Most wouldn't. But now suppose an accident forced you to miss work for 10 weeks or longer. Could you count on your firm to take care of you? What would happen to your family when those paychecks stop? If your company provides you with disability coverage as a benefit, then you can rest easier. 

Or can you?

Perhaps your firm offers coverage as part of your benefit package. Many good companies do, either with short-term coverage, long-term, or both. If not, you may have purchased a disability policy of your own.

There are some things you need to know, however. Many group disability policies aren't worth the premiums that are paid, because of very limiting language in the policy. You could find your false sense of security shattered in the event that you can't work.

What to Look For:

The way that disability policies are written can be confusing. Here are some of the provisions that you should focus on to determine just what you have (or are considering buying).

1. The Renewability Provision

This is one of the key provisions of the policy and defines your rights when it comes to keeping the policy in force. If a policy is "Guaranteed Renewable" only, the company cannot cancel the contract for any reason as long as you pay the premiums (usually up to age 65). They can, however, increase premiums. If the policy is both "Guaranteed Renewable" and "Non-Cancelable", then the company cannot cancel, change, or raise the contract price. This is what you want.

2. Definition of Total Disability

There are three ways to classify disability: "Own Occupation," "Modified Own Occupation," and "Any Occupation."

  • Own Occupation

This one pays if you cannot perform your normal occupation. This is the friendliest definition to you because it will continue to pay even if you find another job, as long as you can't perform the normal duties of your previous job (and your new job isn't just like your old one). Ideally, you should get the policy with the longest "Own Occ" period available.

  • Modified Own Occupation

This one says that it will pay if "you are unable to perform the substantial and material duties of your occupation, and you are not working." This type policy has become the most prevalent.

  • Any Occupation

This one is the most restrictive. It pays only if you are unable to work in any occupation in which you are reasonably suited by education, training, or experience. If you have any education or experience at anything, you aren't likely to collect much from this type of policy.

Buyer Beware!

As with so many financial products, you should always go into a contract with your homework done. Nothing infuriates people as much as paying an insurance company for years, only to find out that they don't have what they thought they did, at crunch time.

In my opinion disability insurance is one of the greatest values on Earth. If you ever need it, you'll agree with me. Just make sure that the coverage you want to have in place is what you really have.

Until next time,


Are you retiring soon, or already retired? You might be interested in our weekly webinar. To see a list of topics that will be discussed, click here:

Retirement (what you need to know)


Insurance and annuity products are not sold through Virtue Capital Management, LLC (“VCM”). VCM does not endorse any annuity or insurance products nor does it guarantee any annuity or insurance products performance.

Topics: Disability Insurance

What you don't know can hurt you!

As a fiduciary I am required to always act in your best interests, and as a professional planner, it's my job to be familiar with all types of possible solutions and financial vehicles. In short, I have no interest in selling any particular product or any affiliation with a particular company. I work for my clients.

Are you:

  • concerned that your tax bill is too high?
  • tired of watching your nest egg decline by significant amounts every 5-7 years?
  • wishing you could find more free time?
  • looking for ways to help protect yourself against litigation that could destroy all you have worked for?
  • worried that Uncle Sam is going to enjoy your retirement more than you are?

If any of the above describes you and you'd like to get a question answered then just click the button below and we'll be in touch.

Let's Meet!

p.s. we have the ability to meet virtually regardless of your location! Give us a shout!


Like this blog? Fill out the form and get e-mail updates. Don't miss out!

Recent Posts