Disability Insurance
Q. What is disability insurance?
Disability insurance provides protection against the loss of income that could result if a disability prevents you from working and earning a living.
The risk of becoming disabled is greater than you might think as more than 30% of all U.S. employees between the ages of 35 and 65 will become disabled for 3 months or more in their lifetimes. Two-thirds of these employees will be disabled for 5 years or longer before age 65. (1987 Commissioner's Group Disability Table, Society of Actuaries)
Q. What are the eligibility requirements?
To be eligible, an employee must have been actively performing the duties of their occupation on a full-time basis (working a minimum of 20 hours per week).
Q. If I have a disability, how much income can I receive?
You can choose a monthly disability benefit that suits your needs. Income depends on employer and usually not exceeding 70% of your monthly salary.
Q. Is there a waiting period after I become disabled?
These waiting periods can range from one week to two years, and the longer you wait the less your disability policy will cost.
Q. How long can I receive benefits after disability?
The benefit period can range from six months to life, depending on what you choose as well as what your insurance company is willing to offer you. Of course, the shorter the benefit period, the less disability insurance costs.
Q. Are there any issues with pre-existing conditions?
A disability caused or contributed to by a pre-existing condition will not be covered until you have performed your regular occupation on a full-time basis for 12 months following in your effective date.
Q. What is a pre-existing condition?
A pre-existing condition means you have received medical treatment, consultation or services including diagnostic measures, or took prescribed drugs or medicines in the 12 months just prior to your effective date.