|
|
| | |
|
Disability Insurance Basics
|
|
Individual/Group Disability Policy Alternatives
Individual policyDescription | Conditions | Advantages | Disadvantages |
---|
A policy you
buy through your insurance agent that pays you disability benefits when you are
sick or injured | You must meet the underwriting criteria set by the
insurance company for occupation, health, habits, avocations, etc. | - Benefits are tax free if premiums paid with after-tax
dollars
- Flexible policy benefits and features such as lifetime
benefits, cost-of-living increases, partial benefits, etc.
- Provides the most comprehensive coverage
- Premiums generally can't increase
- Generally, you can't lose coverage if you pay the
premiums
| Most expensive type | Group policy issued through an employerDescription | Conditions | Advantages | Disadvantages |
---|
A disability benefit you receive through your employer; your
employer may or may not pay part of the premiums | You have to be a
member of the group (in this case, a group of employees) that sponsors the
insurance | - Low group premium
- Available as short- or long-term coverage (or both)
- Usually, you don't have to prove insurability
| - Less flexible benefit design than individual
disability policies
- Will terminate when employment ends (non-portable)
- Premium will increase as you get older
- Definition of disability may be less liberal than
individual coverage
- Benefits will be offset by Social Security, workers'
compensation, and some other types of disability insurance
| Group policy issued through an association or organizationDescription | Conditions | Advantages | Disadvantages |
---|
A disability policy purchased through an
association or organization, such as the New Hampshire Realtors
Association | You must be a member of the group that sponsors the
insurance (in this case, a trade association or organization) | - Low group premium
- May have more liberal underwriting requirements,
although not guaranteed acceptance as with employer groups
| - Less flexible benefit design than individual
disability policies
- Definition of disability may be less liberal than
individual coverage
- Contracts may be cancelable by insurance company or
association
- Premium will increase as you get older
| |
|
|
|
|
IMPORTANT DISCLOSURES
The information presented here is not specific to any individual's personal circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
This communication is strictly intended for individuals residing in the state(s) of AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, UT, VT, VI, VA, WA, WV, WI and WY. No offers may be made or accepted from any resident outside the specific states referenced. |
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2024. |
|