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Disability Insurance - Understanding Long Term Disability (LTD) Insurance

Published Saturday, November 22, 2008 by bloggerblognet83280 | E-mail this post

Before you finally settle with any particular insurance company for your LTD insurance, you need to understand what they have to offer and how much benefit you stand to gain from them.
The following are things you should look out for:

1.The length of your coverage. Usually LTD insurance coverage ranges from two to five years, to retirement which officially is 65 years. The longer years your coverage pays, the higher your premiums.

2.When Payments begin. You can decide to wait to start getting your disability benefits, anywhere from the first 31 days after disability to six months. The longer you opt to wait the lower your premium.

3.Inflation. You have to consider inflation when buying an LTD insurance policy. You can buy additional Cost-of-Living-Adjustment (COLA) to your basic policy. This increases your payout by 4-10% each year.

4.Payment Trigger Date. Some policies would allow you top choose your waiting period. This you have to do at the time of your application.

5.Residual Benefits. This is the payment that helps you make up your income if you are still able to work but you are limited in your activities by your disability. For example if you used to work as a crane operator and you earned $450,000 per annum and you had an injury that restricted the use of your legs and you were assigned to a desk job that pays you about half of your annual income ($250,000 P.A), the residual benefit would pay the difference.

6.Extent of Disability. Most policies would not pay any benefit until it is proven that you have total disability. Some policies would pay for partial disability but only for a brief period of time.

7.Definition of Disability. You have to really be sure that you understand what your policy defines as disability. Some policies define disability as the inability to work in your professional capacity. That is only if you cannot carry out the responsibilities of your normal occupation. Others define disability as when you cannot work at all.

8.Presumptive Disability. This is defined as when you can still work but have lost the use of some organs in your body like eyes, tongue, ears and limbs.

Here are great pages for health insurance quotes...

InsureMe Health Insurance Quotes

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Chisomeje Odimba writes for Quality-Insurance-4-Less.

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