I have disability insurance under what circumstances can i g

Submitted by Trippybry on Sun, 12/27/2009 - 01:35

my disability insurance does not pay enough for a pca how do i get an increased amount?

Posted: 27 Dec 2009 12:38 Post Subject:

Is this thru your employer? A private policy that you paid for? or increased?

Posted: 28 Dec 2009 01:01 Post Subject:

To increase coverage you will have to purchase additional coverage. You might have the option to purchase additional coverage from an employer group plan. The coverage that you get from a group LTD plan is rather basic and not the most comprehensive.

To increase coverage and get better coverage than a group plan, look at individual policies. Speak with an agent about individual disability insurance and they can help you with the purchase of a plan to increase your current coverage.

Keep in mind that there are limitations to the amount of disability insurance that you can own. These are referred to within the industry as participation limits. Most often you'll see this--as a consumer--in terms discussed as a percentage of your gross income. In truth, every insurer has a specific number they are willing to issue to each combination of income level and occupation class.

Posted: 28 Dec 2009 07:54 Post Subject:

To increase coverage and get better coverage than a group plan, look at individual policies.


If someone pays more and adds coverage to a group plan - then how's it better to go for an individual plan?

Posted: 28 Dec 2009 11:08 Post Subject:

Disability income insurance is all about the contractual terms. Much more favorable contractual language can be purchased with an individual plan than can be purchased with a group plan. In other words, there are many things that can happen that will result in no payment from a group plan, but a payment will be made with the disability in the individual plan.

Good individual policies can typically only be purchased by white collar professionals.

Posted: 29 Dec 2009 12:23 Post Subject:

If someone pays more and adds coverage to a group plan - then how's it better to go for an individual plan?



That's not what I've stated. The increase in group coverage was merely mentioned as a way to increase coverage/monthly benefit.

The purchase of an individual plan is an alternative solution. Potentially better because individual disability insurance has benefits available that no group plan I've ever seen included.

Examples include:

1. Residual benefit

2.) COLA

3.) Lifetime benefit

4.) Guaranteed increase options, which can be exercised if group coverage is eliminated.

5.) Catastrophic disability benefit

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