The three main categories are: Own Occupation; Regular Occupation; and Any Occupation.

Own occupation means that if you are unable to perform your regular occupation and are eligible to receive benefits, you will not be prohibited from working or receiving remuneration from another unrelated job.

Regular occupation means that if you are unable to perform your regular occupation and are eligible to receive benefits, you aren’t permitted to work at another job while receiving benefits.

Any occupation means that you will not receive benefits while you are able to perform any occupation for which you are suited by education or training.

Non-cancelable and guaranteed renewable is the most sought after plan. With this type of policy the carrier can’t raise premiums, usually to age 65, coverage can’t be cancelled and the policy’s terms are fixed at issue.

Guaranteed renewable is another type of plan. Coverage can’t be cancelled; but, premiums can be increased based upon the company’s experience. Usually policy increases are by class, as opposed to being based on an individual’s experience.

Before benefits begin to be paid an elimination or waiting period must be satisfied. The shorter the elimination period, the higher the premium. Common waiting periods are 30 days, 60 days, 90 days and 120 days.

The most frequently promoted waiting period is 90 days, usually to keep costs affordable; however, about 90% of disabilities are cleared up within 90 days.

The benefit period is the length of time during which benefits could potentially be paid while one is disabled.

Some occupations are considered high risks for disabilities from occupational accidents and are frequently limited to short term benefit periods.

Benefit periods can range from 2 years, 5 years, 10 years or be level to age 65. A benefit period relates to each incident of disability.  One can recover from a covered disability and subsequently suffer another condition, covered by a new benefit period.

The potential amount of benefits to age 65 are frequently stressed; however, approximately 97% of disabilities are clear up with one year.

Some policies have a provision that pays you benefits even if you have returned to work on a full time basis and are able to perform all your principal duties, if you suffer a reduction in income.