Disability Insurance

Ever considered what would happen if you lose the ability to work due to a disability caused by an injury? What would happen to your income? How would you replace it to continue to live as you were? Long Term Disability Insurance (LTD) can protect you by providing coverage to replace a portion of your income should you become disabled and not able to physically work any longer. Although many individuals have LTD coverage provided through employers or unions, not all are afforded this option. Meslee Insurance works with an array of companies to provide Long Term Disability Coverage to individuals. Our connection to multiple carriers allows us to shop and find the best coverage at the most affordable price. We will consult you and discuss your work history, earnings, possessions and more in order to find a policy that suits your particular situation. Our office has helped countless amounts of individuals in obtaining the coverage that they need, even those with poor medical history and pre existing conditions. Call us today to speak to one of our licensed representatives to go over coverages and ensure you are prepared and covered in the event that something happens to you.

 Definition of disability

LTD Providers generally use two common definitions for disability and designate policies accordingly. The two typical types are:

Own Occupation or “Own Occ”: You must be unable to perform your own occupation to be considered disables. Generally, you will get a benefit check for two to five years.

Any Occupation or “Any Occ”: You must be unable to work in any occupation to be considered disabled. Generally, you will get a benefit check until you can go back to work or until the policy ends.

 

Short Term Disability Insurance vs. Long Term Disability Insurance

Just like life insurance, disability insurance protects future earnings and although it is often overlooked, experts agree that disability coverage can be as important if not more important for many individuals. While most individuals are prepared for the medical costs of a severe injury or sickness, many are not prepared with the loss of income that accompanies such tragedies. It is important to understand that if you count on your job to pay for rent and buy food, then you should seriously consider a long term disability policy. Disability Insurance comes in two types: short-term and long-term. Short term disability replaces portions of salary for individuals who miss less than six months of work. Furthermore, short term disability policies may start out by paying 100% of salary but eventually drop to as little as 60% of wages. On the contrary, Long Term Disability insurance policies pick up where short term policies leave off and offer coverage for individuals who miss more than six months of work. Typically, LTD policies can be purchased to replace 50%-70% of salary and policies vary in length of payout (payout options of 5 to 10 years or pay out options till the age 65 can often be found).

 

General Types of Long Term Disability Policies

Non-cancelable LTD Policy: With a non-cancelable long term disability policy, the policy can not be cancelled as long as the required premiums are paid on time. Furthermore, the policy holder has the extra security that premiums can never been raised above shown on the policy. In other words, the premium is fixed.

Guaranteed Renewable LTD Policy: With a guaranteed renewable policy, the premiums can be raised if the change affects an entire class of policyholders.

Other Types of LTD Policies: There are other types of LTD policies available that have been designed to cater to specific needs. Some examples of this are High-limit LTD policies and Key Person LTD policies. The former is designed for higher income individuals by increasing the limit of benefits that can be paid while the latter is designed to protect the company in the event that a disability prevents a key employee. These two are just examples of many different tailor made LTD Policies. Please contact us for more information or to find the right type of LTD policy for your particular situation.

 

What to look for when purchasing a Long Term Disability Policy

  • Definition of disability (own occupation or any occupation)

  • Benefit Length & Amounts as well as Elimination Periods

  • Are there benefits for partial disability?

  • Non-cancelable or Guaranteed Renewable?

  • Exclusions or other coverage limitations

  • Optional Riders (“residual benefits” & “cost of living”)

 

Other information

  • Many employers offer disability coverage for their employees but plans vary greatly and may not offer adequate coverage. It is important to check to see if you have adequate coverage with your employer.

  • Generally, disability payouts from an employer’s policy are subject to taxes while payouts from individual policies are not subject to taxes.

  • Please visit our insurance glossary tab for a full list of insurance terms and definitions.

  • There are many discounts available to help reduce your premium. Please visit our learning insurance discounts page to find out more information on how to maximize your savings.

 

This page contains only a general description of coverages and is not a contract. Details of coverage or limits may vary in some states and by carrier. All coverages are subject to the terms, provisions, exclusions, and conditions in the policy itself and in any endorsements.

 


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