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 disability policy.
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. Through Insurance Specialists, Inc. our professional insurance administrators can offer different plans. Call now (888) 451-0883!