Posted: Mon Sep 17, 2007 11:14 am Post subject: What does the disability insurance cover?
Hi, I'm curious about disability insurance. What do they normally covered? Will they cover partial disabilities? Is it a wise purchase when we have social security disability benefits? Tim k Wallace _________________ Register Now to have your Insurance queries solved.
Disability insurance will compensate you for the income loss if you suffer any permanent disability. Normally, they start paying off the benefits after a certain time period, known as ‘elimination' or ‘waiting period'. According to their definition, you need to suffer from physical condition that will restrict you from performing your daily works and your job. Once you have become disabled the insurance will pay out 70%-80% of your income as compensation. The benefits may continue from six months to years depending upon your situation.
Do you mean the disability insurance that you can purchase from your employer? Or a private policy? I personally think they are a good idea and my husband and I both have purchased the max thru our employers. And have been thinking about buying a private policy as well.
SS disabililty is generally not as high as what you can buy privately, (dependent of course on your salary). The policy I have at work is a full 60% of my salary, for both partial and full disability, (the full disability pays that amount until I would reach retirement age...12 years, 8 months and a couple of days! not that I'm keeping track or anything! ) . These policies are typcially very inexpensive, and I think well worth the money. We never know what could happen at any moment.
Hi Tim, please don't depend on social security disability benefits alone. The eligibility criteria are very strict and over 70% of the applicants fails to satisfy them. On the other hand, private disability insurances offer wide range of benefits (I'll second lori on this matter). It is always a wise bargain to add a disability policy to you portfolio. Coloradoblitz _________________ Register Now to have your Insurance queries solved.
You are right Lori- it is well advised to use the disability at your work. I had to do this, I had the temporary and the permanent.
I got realy sick, and it payed for itself, had I not had it, I would have been in trouble financially.
A friend of the family, who was 32 years old was questioning whether at her age to get this through her employer. I spoke with her and described what could happen- she also has 3 kids, and she took it.
A few years down the line, she got really sick- remained in the hospital for 3 weeks, and then had to have home health care come out. It doesn't matter how old or young you are- you never know!!..KAren
My dad, who was in insurance for 38 years always told me that it was better to pay now, than have to later- and cheaper too!!
Posted: Tue Sep 18, 2007 4:25 am Post subject: Quite correct!
Hi you're quite correct at saying that we should 'pay now', rather than pay late...since not only the premiums...sometimes its the nature or need of the coverage that also changes with time...for instance say at the age of 30 I'd go for a health coverage but by the turn of 50 or 60 Imay choose to go for a long termcare coverage since it would cover me for more...& see how the premium would change for such coverage...but then to my mind it would seem quite useless to opt for a brand new health program!
ArindamSenIndies
Great question, and a lot of answers! Here are some basics regarding Social Security Disability Income, or "SSDI."
First of all...good luck. In order to qualify for SSDI, you must meet their eligibility criteria:
1. The disability must be expected to result in death or last at least 12 months.
2. There is a 5-month waiting, or "elimination" period starting on the date of disability, with benefits payable on the 6th month if accepted.
3. You must be both "fully" and "disability" insured throught the S.S. system in order to be eligible. (another discussion).
4. You are at the mercy of your case worker. S.S. says that you must "be unable to find substantial employment in the entire national economy."
Individual and group contracts also have elimination periods, primarily for Long-term disability contracts. Watch for the language within the policy that determines how you qualify for the benefits. There are absolutely different terms that are defined differently in D.I. policies:
"Own Occupation" contracts state that you are eligible for benefits if you cannot perform one or more of the duties of your own occupation.
"Reasonably Suited" policies say that if by reason of experience, education or training you can find substantial employment, then you are not disabled under the policy's terms and will not receive benefits.
"Any Occupation" contracts say that if you can find "any" substantial employment, you will not receive benefits under the DI policy.
These, and more, are critical considerations. Same with both Short and Long term DI contracts. STD normally provides benefits for one year or less. LTD policies commonly provide benefits for 2 years or longer.
There are also tax considerations if you actually receive benefits, depending on who and how the policy was paid for. If you are looking for one single reason to purchase, consider this: you are 7 times more likely to become disabled before age 65, and one person out of five will suffer a disability that lasts 5 years or longer. Kinda scary!
If you need anything else, let the forum know...we'll be happy to help!
If you are looking for one single reason to purchase, consider this: you are 7 times more likely to become disabled before age 65, and one person out of five will suffer a disability that lasts 5 years or longer. Kinda scary!
Well, I've some more figures that may be of some interest to you......
around 43% of the men population may suffer serious disability during their working years, and may require assistance for a longer period of time.
The chances of becoming disabled for a person is high at the young age.
Under the age of 35, every one out of three individuals are likely to suffer from disability for at least six moths during their career.
women are prone to disability at their late age, as they live longer than the men. Around 54% of the women population are the risk of disability.
Sorry, if I've made this thread even more scary to the readers. _________________ Register Now to have your Insurance queries solved.
) . These policies are typcially very inexpensive, and I think well worth the money. We never know what could happen at any moment.
