Protected by a keyman insurance

by Guest » Tue Jan 29, 2008 06:10 am
Guest

Guys, I am protected by a keyman's policy through my employer. Do I need to keep the disability option open? Paul'dKeller

Total Comments: 4

Posted: Tue Jan 29, 2008 06:20 am Post Subject:

Hey don't look perplexed!
Why so much of confusion when you're into the right place? :)
Let me be very frank in saying that your policy would protect you till you're an employee...am I right? What if you get disabled for good? Would the keyman's policy come to any use then? StopgapMelonnie

Posted: Tue Jan 29, 2008 06:30 am Post Subject: don't mess it up!

my friend..isn't keymans policy a group health policy? I got reasons to believe that health policies have their own leaps-n-bounds (especially they are offered within a group). 'Disability' in my opinion is a completely different phenomenon when you might not even consider any form of earning & your household cores might just come to a stake. PlayboyMartini

Posted: Tue Jan 29, 2008 06:33 am Post Subject: compare

Hi Paul'dKeller!

Do I need to keep the disability option open?


You gotta compare the impacts on your family & future in case you need to depend on SSI (for disability). A minor healthcast is a small fry compared to a giant like 'Disability'. Got it!

Posted: Tue Jan 29, 2008 05:10 pm Post Subject:

The OP said:

Guys, I am protected by a keyman's policy through my employer. Do I need to keep the disability option open? Paul'dKeller



Unfortunately, you didn't tell us what type of key-person (used to be called "key man" insurance, but political correctness is now the norm!) policy you have. Is this a life or disability policy? Normally, this insurance is one or the other, and not both. The impression that I got was that it's a disability contract. Regardless, the information below applies in either case.

"Key Person" insurance typically does NOTHING for the employee. It's insurance intended to indemnify the EMPLOYER in case of the disability or death of the EMPLOYEE. Again, these policies normally do nothing for the employee or the family of the employee.

The purpose of key person contracts is to fund a replacement search and training environment in order to replace the dead or disabled employee, and commonly will include additional funds to replace the income that the dead or disabled employee WOULD have brought into the company had that person remained alive or able-bodied.

It is NOT a group policy, and is normally individually underwritten by the carrier issuing the policy. Hope this clears up some things!

Let us know what kind of policy you are referring to: life or disability? Then we can give you additional information to clear things up!

InsTeacher 8)

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