A non-integrated policy in long-term disability insurance refers to a type of policy where the benefits paid out by the insurance company does not take into account other sources of income that the individual may receive.
In an integrated policy, the disability benefits paid out by the insurance company may be reduced by the amount of other sources of income, such as Social Security Disability Income or pension benefits, that the individual is receiving. This means that if the individual is receiving other sources of income, their disability benefits may be reduced, resulting in a lower total amount of income.
On the other hand, a non-integrated policy does not take into account any other sources of income that the individual may be receiving, and the disability benefits are paid out based solely on the terms of the policy. This can result in a higher total amount of income for the individual, since the disability benefits are not reduced by other sources of income.
It’s important to carefully review the terms and conditions of a long-term disability policy to understand whether it is integrated or non-integrated, as well as any other provisions that may affect the amount of benefits paid out.
