Like many professionals, your most valuable asset is your ability to earn an income. That is, assuming you’re capable of working. If you are unable to work due to an illness or injury, your financial obligations will not just disappear. Would you have the income or financial resources to maintain your lifestyle? For most professionals, the obvious solution is to invest in disability insurance coverage.
The primary goal when purchasing a long-term disability insurance policy is to replace income lost should you ever become unable to work as a result of an unexpected illness or injury. Unfortunately, many individual and group disability policies are written in such a way that the available coverage is unclear. It is easy for individual disability insurance policyholders who are not trained to read insurance policies to misread or misunderstand an insurance policy.
If you become disabled and have to file a claim for disability benefits, you may find that the coverage you purchased is insufficient. That is exactly what insurance companies intend to happen. They use the small print to deny claims and avoid paying disability benefits
Obtain a Free Analysis of Your Individual Disability Insurance from Ortiz Law Firm
Nick A. Ortiz, the founder of the Ortiz Law Firm, has years of experience representing disabled individuals nationwide and is dedicated to excellent client service and outstanding results. He has handled long-term disability appeals and/or filed lawsuits against major disability insurance companies, including Aetna, Ameritas, Assurant, CIGNA, The Hartford, The Standard, Lincoln Financial, Mass Mutual, MetLife, Mutual of Omaha, New York Life, Northwestern Mutual, Principal, Prudential, Sun Life, and UNUM
What is an Individual Disability Insurance Policy?
Do you have an individual disability insurance policy or a group policy? This is an important distinction to make, as different rules apply to an individual disability insurance policy. It is almost always better to have an individual policy.
Underwriting
A major difference between individual and group policies is that individual policies are underwritten with respect to the individual purchasing the coverage, whereas group policies are based on certain underwriting assumptions related to the general health of a group of people.
Premium Payments
Individual policies are selected and paid for by the insured. Group coverage, on the other hand, is usually offered and paid for (in whole or in part) by an employer or union.
Under some circumstances, an employer will purchase and pay the premiums for an individual policy on behalf of an employee.
Conversely, an individual may personally obtain group LTD coverage unrelated to his or her employment by joining a group that has group coverage available for its members.
Tax Implications
The monthly benefits are tax-free if you pay the insurance premiums yourself. If the premiums are paid by an employer, you may have to pay tax on the benefits.
How Do You Evaluate Disability Insurance?
If you are considering purchasing a disability insurance policy or have recently purchased a policy, we will help you understand the coverage afforded by the policy. As part of our analysis, we will explain what everything means to you in your situation. We will help you understand what you are entitled to and whether there are deficiencies in your coverage that could be problematic in the future.
Aspects of Your Policy We Will Review
Aspects of your policy we will review in our analysis include:
- Individual disability versus group disability
- Definition of disability: total versus residual disability
- Any occupation, own occupation, or transitional own occupation
- Length of coverage
- The waiting period to access disability income benefits (also known as the elimination period)
- Mental and nervous disability benefit limitations
- Self-reported conditions benefit limitations
- Offset analysis
- Future purchase options
- Available discounts
- Non-cancellable policy analysis
- Cost-of-Living Adjustment (COLA)
These terms may not make sense, but do not worry. We will explain all of this terminology and how it would apply to you if you were to file for long-term disability benefits.
Request a Free Individual Disability Policy Analysis
Call Ortiz Law Firm at (888) 321-8131 or fill out the form below to submit your request for a free disability policy analysis. Nick Ortiz offers a free analysis of your individual disability insurance policy. Please allow 10 business days to receive your analysis.