Talking with someone about their disability insurance claim
I was talking with someone about their disability insurance claim last night. They have quite a few questions since I’m in the insurance business- elimination period- the pay out- taxable income or not taxable income.
Luckily this nurse had disability insurance supplied for her by the hospital she worked at- If she’s not able to continue all her normal duties of the job, then she is able to get paid from her disability policy to pay for her mortgage- food and utilities-
When choosing a disability insurance policy- a couple things to keep in mind-
Short term or long term disability insurance– one pays for immediate pay out like broken limbs or a short stay in the hospital- Long term disability insurance pays after a longer elimination period but protects your income after your cash reserves start dwindle- making sure you don’t have to use retirement funds or other resources to continue to pay your bills
Own Occ or Any Occ- Own occupation means the policy pays if you are unable to perform your own occupation that you were trained for or have been working at. You may be able to collect and still work at another job to supplement income – Any occupation means you would be totally disabled meaning you would have problems doing any job
Short and Long Term disability insurance can certainly help save everything you’ve worked for. If you already have a condition, Short or long term disability insurance may not pay for a disability that is known. An example- One client had had about with depression and was on medication for 15 years when they purchased their policy- after a review of the records the insurance company said the disability insurance policy would pay for anything but a disability or job loss for depression- The insurance company was saying that it’s a known issue. The insurance company can’t help it if the insured stops taking their medication and becomes depressed. However it would cover any other types of disability.
If you have been turned down for disability insurance that has been underwritten then you may qualify for a graded disability policy- Graded disability policy starts with a smaller pay out in the beginning- but gradually grows over time until you have gone long enough with no claims and are eligible for a full benefit.
https://fdpinsurance.com/index.php/express-issue-disability-insurance-apply-online/
To find out more about disability insurance- feel free to call 617 680 7063
FDP Insurance
https://fdpinsurance.com/index.php/disability-insurance-fdp-insurance/