[CAUT] disability insurance

Wimblees@aol.com Wimblees@aol.com
Thu, 19 Jan 2006 14:56:43 EST


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In a message dated 1/19/2006 12:58:56 PM Central Standard Time, =20
jim_busby@byu.edu writes:

How much does  =E2=80=9Cdisability insurance=E2=80=9D cost? What does it cov=
er? Would Brent=20
Fischer have been  covered for his hearing loss? It brings a lot of question=
s=20
to  mind.


I used to sell disability insurance, and there are a lot of different =20
coverages. Obviously, the better the coverage, the higher the premiums. Here=
 are =20
some examples.
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As a standard, Social Security will pay benefits when you are not able to =20
perform any duties of any job after being totally disabled after 6 months. T=
he =20
payments will continue as long as you are in that condition. How much the =20
payments are I don't know, but I assume it is what senior citizens are getti=
ng =20
when they retire.=20
=20
Insurance companies will sell you insurance that starts paying after you've=20=
=20
been disabled for as short as a week, or as long as 6 months. They will pay=20=
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benefits for a year, 5 years, or life. Premiums are based on the when the =20
coverage starts, how long it will pay, the amount of payments you get, and =20=
the=20
age at which you get it. I have two small policies that will pay me $800 a =20
month for 5 years after I have been disabled for 30 days. The premium for  b=
oth=20
policies is about $400 per year.=20
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The definition of disability also varies, from not being able to perform =20
your "normal" duties, to not being able to do anything in your trained =20
profession. My policy says my "normal" profession. In other words, if I did=20=
 loose my=20
hearing, my policy would cover me.=20
=20
There are two very important condition a disability policy needs  to have.=20
First, the rates will never be increased for any reason. There are  companie=
s=20
that sell disability insurance for a low figure for young people,  but the r=
ates=20
will go up every 5 years or so, for the same  coverage. The second clause is=
=20
that the policy can never be  canceled. Some companies will cancel you after=
=20
you file a claim. By this  time, you might have a condition that makes you=20
uninsurable. Obviously that  is not good.=20
=20
I hope this information is helpful.
=20
Wim=20
=20
=20
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=20

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