Private disability insurance coverage typically ends when one of the following events occurs:
1. The policyholder returns to work: If the insured person is able to resume their job or a similar one, the insurance coverage will end.
2. The policy term expires: Most private disability insurance policies have a specific term or duration, which is usually determined at the time of purchase. Once the term is up, the coverage will end, unless the policyholder renews or extends the policy.
3. The policyholder reaches the maximum benefit period: Some policies have a maximum benefit period, such as 2 years, 5 years, or to a specific age (e.g., 65). Once the insured reaches the maximum benefit period, the coverage will end.
4. The policyholder passes away: If the policyholder dies while still receiving disability benefits, the coverage will generally end. However, some policies may include a 'survivor benefit' that provides a lump sum payment to the beneficiaries.
5. The policyholder's premiums are not paid: If the policyholder fails to pay their premiums, the insurance company may cancel the policy, and the coverage will end.
It's important to note that the specifics of when private disability insurance coverage ends can vary depending on the policy terms and conditions. Always review your policy documentation to understand the details of your coverage.