Do you ever wonder what would happen if an injury or illness wiped out all of your savings? You may say “I have disability insurance for that”. That’s a good start, but what if they don’t pay? Then what? Do you have a back up plan? Waiting to find out could cost you everything you own.
If you have already purchased a disability policy, here is some of what you should look for:
How long is your elimination period?
The elimination period is the amount of time you must remain disabled before the insurance company will begin paying you. For most long term disability, the elimination period is 180 days. That means you will need at least enough money to meet 6 months living expenses while you are waiting for your disability insurance benefits.
Does your insurance policy require you to be under the continuing care and treatment of a physician in order to prove your disability?
With the high cost of COBRA some individuals choose to drop their health insurance as a means to cut expenses. However, if your policy requires you to be under the continuing care of a physician or to be treated by a specialist for your condition, for most individuals this would be impossible without health insurance.
Does your policy require you to provide proof of disability at your expense?
Some disability carriers will tell you that it is your obligation to get them proof of your disability or they could terminate your benefits or not pay at all. Sometimes the doctors could charge upward of $100 to complete those forms. You need to plan for this, so that you are not caught off guard.
So here is what you do: Go to our website and contact us for a free copy of our book on long term disability insurance policies, the claims process and how to get your long term disability benefits.