Whether you have aging parents or are concerned about the possibility suffering
from a disabling accident, long-term disability coverage is an insurance
coverage rarely discussed but 70% of Americans will need long term care
in their lifetimes’. During the holidays, families that would not
see each other as often gather, why not take advantage of this time to
discuss the long-term care plans.
If your family member should become disabled or elderly and need long-term
care, it can be expensive. The average annual cost can range between $20,000
and $100,000 depending on the care needs and facilities. The average family
is not able to suddenly handle this type of expense. Shopping for private
long-term disability insurance can be confusing, to better help our clients
we have created a quick guide on things to look for in your long-term
Below is a list of things to look for in your long-term disability policy.
The policy should be non-cancelable: Don’t be alarmed by the confusing term non-cancelable, this just
means your insurance company can’t cancel your policy or change
the terms as long as you continue paying. Buying long-term disability
when you’re young means you can lock in rates at lower premiums.
It should be an own occupation policy: A policy with an own occupancy means you will be paid if you are unable
to work in your own occupation. For example, if you are a neurosurgeon
injured in a serious car accident that left your hands permanently disabled,
an own policy would pay benefits because you would be unable to perform
work as a neurosurgeon.
Residual benefits: A policy with residual benefits provides coverage for the policyholder
even if they are able to go back to work part time.
Benefit period of at least five years: Cheaper policies will cover you for up to two years, while other policies
will cover you until you reach the age of 67. A long-term disability coverage
policy with a term of at least 5 years provides decent value for the price.
- Future increase options: This allows you to increase the amount of coverage
without requiring further underwriting and scheduling a medical exam.
Now that you have a decent idea of what to look for in long-term disability
policy, talk to your family about their coverage options.
Insurance Specialists, Inc. our professional insurance administrators can offer different plans.
Call now (888) 451-0883!