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Disability FAQ |
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- What's the difference between Short-term and Long- term disability?
Short-term disability insurance is usually obtained through an employer group plan and is guaranteed so that you can obtain coverage without a medical exam. Short term disabilities are usually a result of an injury, pregnancy, or complications from pregnancy or illness. These policies usually take affect within about 1-14 days depending on the cause of the disability and covers 50-60% of the income loss for up to 13-26 months.
Long term disability takes over from there covering 50-60% of income for 5 year terms or up to age 65 when you typically retire. Long term disabilities are usually the result of more serious issues cancer, cardiovascular disease, and degenerative diseases to the muscles, joints, or connective tissues.
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- What is the difference between Employer sponsored and Individual Plans?
Employer plan cost much less but typically only cover short term disabilities some medium to large employers provide long term plans. Employer plans usually do not require the medical exam.
Even if you can obtain employer plan you might consider a supplemental plan for the additional 10-20% of you think it would be difficult to support your family on 60% of your salary Plans are available through many sources well known ones such as AFLAC. An individual plan would allow for up to 70-80% total coverage of income loss. None of the disability plans will cover all of your salary for fear you will have little or no motive to get back to work.
For the self employed it would be prudent to purchase an individual disability insurance plan. Another difference in employer plans is that if you change employers you will have to obtain a new policy with your new employer, while the individual plan goes with you when you change jobs.
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- When Do I Qualify as Totally Disabled?
During the first 24 months after the Elimination Period, benefits are paid to the Insured if he/she is unable, because of sickness or injury, to perform the important substantial and material duties of his/her own occupation and requires a physician's care.
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- What is a Recurrent Disability?
A second disability is considered a continuation of a previous disability unless it is due to an
unrelated sickness or injury, or the Insured has returned to work full-time for at least 12 months.
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- What is a Partial Disability?
This provision pays 50 percent of the Monthly Base Policy Benefit amount for each month of a
Partial Disability from an insured injury or sickness for up to six months, when the Partial
Disability immediately follows a period of Total Disability during which Monthly Benefits were
paid. The combined Total and Partial Disability benefits cannot extend beyond the Maximum
Benefit Period. Partial Disability is a sickness or injury that keeps the Insured from being
employed on a full-time basis.
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- What Are Disability Insurance Elimination Periods?
The number of consecutive days that an Insured must be totally disabled before the Monthly
Disability Benefit amount becomes payable. The Elimination Periods available are 30, 60, 90,
180, and 365 days
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- What ype of Exclusions For Disability Insurance?
Keep in mind that many policies and plans will not cover disabilities caused by suicide attempts, drug abuse, war, or attempts to commit a crime incarcerations, or illegal occupations. Pre-existing conditions are also frequently excluded
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- When Will Disablity Benefits Start?
Benefits will begin to pay after the initial waiting period also known as elimination period. Most individual disability policies and group plans have a waiting period 30-365 days. When you choose individual disability coverage, you should take into consideration how long you could provide for yourself and family.
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- How Long Will Disability Benefits Be Paid?
With individual disability income policies, you can select the maximum time your benefits will be paid, subject to the carriers underwriting guidelines. With most group disability plans, the employer selects the maximum duration of benefits. The most frequently offered benefit periods are one year two years, five years, and to age 65. Policies with shorter benefit periods will have lower premiums
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- Is Social Security and Option if I am Disabled and cannot Work?
Not Always, Less than 50% of SSI Disability applicants are approved and even if you do qualify for SSI disability benefits will not start for 5 months, additionally you disability must be expected to last for at least 12 months or result in death. The average disability beneift payment is $894.10. Will that cover all your expenses?
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- Why do I Need Disability Insurance When There is Social Security?
No one should count on Social Security benefits to protect them if they acquire a disability. Social security is tough to get, the benefits are low, and you have to be so disabled that you can't work any job, not just your current job. While no one want to consider the thought of being disables According to the American Council of Life Insurers (ACLI), a person age 35 is six times more likely to become disabled than die before he or she reaches age 65 The loss of income can be so devastating that 46% of all home foreclosures are caused by a disability, according to the U.S. Department of Housing and Urban Development.
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- When Will Disability Payments begin after Filing a Claim?
Disability income insurance is designed to replace one's income when they are no longer able to work due to a disability. If a disability should happen, knowing when you will get your first check is a must, but all policies are not equal and how long you will wait for your money is specific to the policy you purchase. Typically after the waiting period you select at time of application 30 days to 365 days.
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- Who are the Top Rated Disability Insurance Companies?
The top tated companies for in-force Non-Cancelable and Guaranteed Renewable disability insurance policies are Unum Provident, Mass Mutual Life, MetLife and Assurity Life.
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- Do I have to Pay my Premiums While Disabled
Typically No, most polices include a waiver of premium following 90 days of Total Disability, or following the Elimination Period. Waiver stops
when Total Disability stops or at the end of the Maximum Benefit Period, whichever is first
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- How much does disability insurance cost?
Disability insurance is priced according to the elimination period, benefit period, age, occupational class, and benefit amount. It can be customized specific to your needs and budget. A good estimate to pay is between 1-3% of their annual income for a quality DI plan
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- Will my medical histories prevent me from qualifying for disability insurance?
DI underwriters are looking for many things, some of which include neck and back problems, mental and nervous condition counseling, and the use of anti-depressants. Even with challenging medical histories, carriers are often willing to limit the benefit period or extend the elimination period to allow clients to purchase DI
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