What is a benefit period and how long should it be?

The benefit period is the maximum length of time the insurer will pay your monthly benefit if you remain disabled. Common benefit periods include 2 years, 5 years, to age 65, or to age 70. The benefit period you choose significantly impacts your premium cost, with longer benefit periods costing considerably more. A benefit period to age 65 or 70 provides the most comprehensive protection, ensuring income replacement throughout your working life if you suffer a long-term or permanent disability. This is particularly important for serious conditions like cancer, chronic fatigue, or severe mental health conditions that may prevent you from working for many years. Shorter benefit periods (2 or 5 years) cost less but only provide temporary income protection, which might be suitable if you're young, have significant assets, or have other income sources. Consider that statistics show the average claim duration is around 6-12 months, but catastrophic claims can last decades. Most financial advisers recommend a benefit period to age 65 as the optimal balance between cost and protection, particularly if you have dependents or significant financial commitments like a mortgage.