How to Insure Your Income: Limiting Benefits
Limitations for substance abuse and mental and nervous disorders also are being considered by many disability insurers. These limitations are fairly common on other forms of health insurance, such as hospitalization coverage. (Many medical expense policies limit the amount of benefits to be paid for substance abuse or mental and nervous disorders to a relatively small sum, compared with the overall lifetime benefits under the policy.)
Stress-related claims fall into the category of mental and nervous disorders. For these claims, insurance companies might limit disability income benefits to a specified dollar amount or a reduced benefit period.
Example: A policy paying $5,000 per month until age 65 may include a substance abuse and mental/ nervous disorder benefit of $2,500 per month payable for two years.
