||Long Term Disability Insurance
to replace one’s income while one recovers from the inability to
perform the regular duties of his/her ccupation, due to an accident or
The three main categories are: Own Occupation; Regular Occupation; and Any Occupation.
occupation means that if you are unable to perform your regular
occupation and are eligible to receive benefits, you will not be
prohibited from working or receiving remuneration from another
Regular occupation means that if you
are unable to perform your regular occupation and are eligible to
receive benefits, you aren’t permitted to work at another job while
Any occupation means that you
will not receive benefits while you are able to perform any occupation
for which you are suited by education or training.
and guaranteed renewable is the most sought after plan. With this type
of policy the carrier can’t raise premiums, usually to age 65, coverage
can’t be cancelled and the policy’s terms are fixed at issue.
renewable is another type of plan. Coverage can’t be cancelled; but,
premiums can be increased based upon the company’s experience. Usually
policy increases are by class, as opposed to being based on an
|Benefit Status & Limits:
plans generally replace a maximum of anywhere from 60% to 66% of one’s
regular income and benefits are received on a tax exempt basis. The
higher one’s income the lower the percentage of income replacement that
benefits begin to be paid an elimination or waiting period must be
satisfied. The shorter the elimination period, the higher the premium.
Common waiting periods are 30 days, 60 days, 90 days and 120 days.
most frequently promoted waiting period is 90 days, usually to keep
costs affordable; however, about 90% of disabilities are cleared up
within 90 days.
The benefit period is the length of time during which benefits could potentially be paid while one is disabled.
occupations are considered high risks for disabilities from
occupational accidents and are frequently limited to short term benefit
Benefit periods can range from 2 years, 5
years, 10 years or be level to age 65. A benefit period relates to each
incident of disability. One can recover from a covered disability
and subsequently suffer another condition, covered by a new benefit
The potential amount of benefits to age
65 are frequently stressed; however, approximately 97% of disabilities
are clear up with one year.
|Partial Disability Benefit:
policies will pay partial benefits if you are only able to work part
time due to a disability. It is important that the partial disability
benefit is available prior to the insured becoming totally disabled
because there are a number of degenerative diseases that could lead to
a partial disability before developing into a otal disability.
|Residual Disability Benefit:
policies have a provision that pays you benefits even if you have
returned to work on a full time basis and are able to perform all your
principal duties, if you suffer a reduction in income.
|Cost of Living Benefit:
||An optional benefit rider which causes the policy’s benefits to increase with inflation each year the insured is disabled.
|Future Purchase Option:
optional benefit rider which permits an insured to purchase additional
coverage when his/her income justifies an increase in benefits. The
additional coverage is not subject to medical evidence, solely proof of
|Free Report for more details:
||Refer to Free Report section to request a Free Report on Long Term Disability.
||To request a Free Quote refer to Quotes section.