Even though there is no specific space for it, you need to note the contact information for the company, and if applicable, the agent for each insurance policy as well as any group affiliation (if the policy is based on group membership). Contact information for the insurance company should be located on the policy. If not, call your agent and obtain it for your own records. Contact information for your agent should be stored with your policy. If not, write it down and store it with your policy.

Insurer’s Financial Strength Rating must be obtained by either telephone or the Internet. You may use any of the raters listed there, but make sure you obtain the rating for the actual company that underwrites your policy.

Annual Premium is the total amount you pay for the policy in a year. If you make monthly payments, multiply your monthly premium by 12; if quarterly, multiply by 4. Waiver of Premium refers to a policy provision that will continue the insurance in force without the payment of premium during any qualified period of disability (as defined by the policy).

Policy Number is the number the insurance company uses to identify your specific policy. This may sometimes be referred to as the “certificate number” or some other name.

Name of Insured is the person who must become disabled within the meaning of the policy for the insurance policy to pay off. Birthdate of Insured is the birthdate of that person. This is important because most disability insurance policies cease coverage at some point—usually age 65 if based on age.

Term of Policy means the maximum length of time that the disability benefits will be paid. Most policies pay either for a specified number of months or years or until a particular age is reached.

Noncancellable and guaranteed renewable: Examine your policy to see if you have the right to renew your policy despite claims made, and circle yes/no on the worksheet; also see if you have protection against cancellation by the insurance company despite claims made, andcircle yes/no on the worksheet (which, by the way, also protects against premium increases based on claims).

Monthly Benefits refers to the gross number of dollars you would receive from the policy each month if you were disabled today within the meaning of the policy, without regard to any offsets stated in the policy. If this number is based on a formula or a reference number (e.g., your salary), note both the number and the formula from which it was derived.

Any Offset Amounts refers to whether there are any negative adjustments such as offsets if you are receiving other benefits (e.g., Social Security, other disability insurance, worker’s compensation, etc.). If your policy has offset provisions, list the type of offset and any formula to compute the offset (e.g., if the offset is dollar-for-dollar, specify it as equal to benefit). Also calculate the actual amount of any offers in dollars if claims were made today.

Cost-of-Living Adjustments, if any, refers to provisions that increase your monthly benefits after you are disabled based on increases in the cost-of-living due to inflation. If this is tied to an index, state the index.

Who Pays Premium: This determines taxation of policy proceeds. If you pay the premium out of your own pocket the policy proceeds are nontaxable. If your employer pays, then all proceeds are taxable as ordinary income.

Net Benefit/Percentage of Current Monthly Income: This provision requires a calculation. You must first determine your monthly income using your household budget. Then calculate the ratio of the net monthly disability benefit (after offsets) to your own monthly income. For example, if you typically receive monthly income of $5,000 after taxes and your disability income net benefit (after taxes) is $2,500, per month, it represents 50% of your monthly income. First: monthly income from family budget __________________________

Second: net monthly disability benefits (after offsets) __________________

Third: compute any taxation on net benefits and subtract from net benefits

Fourth: compute ratio: [amount under “first”] / [amount under “third”] ____________________

(express in terms of percentage). You may also wish to compute the number of dollars short of 100% with all policies combined to know what your budget shortfall may be if you became disabled today.

Elimination Period: The amount of time that must elapse between the beginning of the disability and when payments will begin under the policy.

Date Coverage Ceases (if based on insurer’s age): If your insurance policy pays until a particular age (e.g., 65), calculate the date on which coverage ceases based on the insured’s current age. You may want to compare this with your social security eligibility date.

Event Upon Which Coverage Ceases (if based on insured’s group affiliation or employment): If your insurance policy only covers you while you are employed or a member of some organization, note that limitation. Also, if your employment must be full-time or a minimum number of hours per week, note this fact along with how the plan defines eligibility.

Initial Definition of Disability: Cite the specific language the policy uses to define when an insured will be considered disabled. Inability to perform your own job? Inability to perform any job? Does the policy cover both accidents and illnesses?

Further Definition of Disability: If the definition of disability changes after a period of time (e.g, after 2 years of disability), note the new specific language the policy uses to define when an insured will be considered eligible for continued disability after that time.

Partial Disability or Rehabilitation Coverage: Note the language of any partial disability or rehabilitation coverage provisions in your policy. Also, make a note if these benefits are absent, in which case only a total disability is compensable. If your disability merely limits the types or amounts of work you are able to perform—even if your pay is decreased—you may not be able to make up any part of the shortfall without this type of coverage.

Index Identification is the identifier you assigned to the policy in the earlier exercise.

Further Options: Does the policy offer options to buy additional coverage at a later time, without evidence of medical insurability? If so, note that fact, and when the option dates occur.