Most people who have disability insurance got it because their employer got it for them. But the truth of the matter is that you need to look out for your own welfare. The group disability insurance is not always adequate for your needs hence the consideration for individual coverage.

You can get your policy through a financial planner or your mortgage company or still, the agent who sold you your other policies. The premium for individual coverage is estimated to be about five to ten times more than the cost for group coverage.

Usually there are policies that you can get for two years, five years or until you retire. You can decide to purchase a Cost of Living Adjustment (COLA) this feature allows your benefit to be raised with inflation and gradual salary increase. It adds a percentage to your coverage each year.

To get individual disability policy, you need to take a medical exam to determine your insurability.
Most policies are on a non-cancellable basis or guaranteed renewable basis.

The non-cancellable basis means that after you have taken the medical exams and have signed the dotted lines with your insurer, they cannot cancel the coverage or increase your premiums.

The renewable guaranteed basis means that your insurer cannot cancel the coverage but they can increase the rates. This cannot be done on an individual basis though but can only raise the rates for the whole group of insured person if they have experience high number of claims.

Your individual disability benefits would pay you a fixed amount every month and most times they would not pay more than 80% of your current salary. The determining factors for your premium and whether the insurance company would cover you include; your occupation, your income and other sources of insurance. When they have decided on the rates that you should pay, they'll then put you in a rating class with people of the same age, income, occupation and health condition.

Although disability insurance can be very expensive when you buy it personally, it is a very wise financial decision.

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