Q. What is individual long-term disability insurance?
A. Individual long-term disability insurance provides monthly payments, up to a specified amount over a specific time period, after a covered illness or injury occurs. Disability insurance must be purchased prior to the illness or injury.
Q. Who needs long-term disability insurance?
A. When people become disabled, their income usually stops or is reduced. Most people need some kind of coverage to replace most of their usual income in case they cannot work due to disability.
Q. When are you considered disabled?
A. The definition varies depending on the kind of policy you have. Some plans pay when you're unable to work in your own occupation while others pay when you're unable to engage in any occupation for which you're reasonably suited based on your training or experience.
Q. What types of disabilities are not covered?
A. Many policies will not cover disabilities caused by suicide attempts, drug abuse, war, or injuries incurred when committing a crime. Pre-existing conditions are also frequently excluded.
Q. Is this a group policy?
A. No. This program is being offered to Cultural Alliance members on an individual basis.
Q. How much long-term disability insurance do I need?
A. You should plan on replacing at least 60% of your net income and preferably 80% if you can afford it. Generally, the higher the monthly benefit you apply for, the higher the premium.
Q. How long can I collect benefits if I become disabled?
A. You can select benefit periods of 2, 3, 5, 6 years or to age 65.
Q. How long do I have to wait to receive benefits if I become disabled?
A. Most individual long-term disability plans have a waiting period before benefits are paid. Usually you will have a choice of 30, 60, 90 or 180 day waiting periods. The longer the waiting period, the lower the premium.
Q. How do I figure out which waiting period is best for me?
A. Ask yourself how long could you go without a paycheck.
Q. Are there different types of individual long-term disability insurance?
A. There are two major types of individual long-term disability insurance: individual non-cancellable and guaranteed renewable.
Q. What's the difference?
A. The difference between the two is that under an individual non-cancellable contract, premiums can never be raised above those shown on the policy. With a guaranteed renewable policy, the premiums can be raised, but only if the change affects an entire class of policyholders.
Q. Which type is being offered to Cultural Alliance members?
A. The policy you are being offered is an individual non-cancellable plan, so you have the extra security of having premiums that can never increase.
Q. Do I need a medical exam to qualify for disability insurance?
A. A medical exam is required for all individual long-term disability insurance plans. The required exam is generally fairly simple.
Q. Can I add more benefits to my policy?
A. These additions to the basic policy are called "riders" and you should consider a few. Cost-of-Living and Inflation Option riders are available.
Q. Do I pay taxes on the benefits I receive from my individual long-term disability policy?
A. Since you're purchasing your individual disability insurance with net, after-tax dollars, benefits are usually tax-free.
Q. If I can get Social Security disability benefits, why do I need long-term disability insurance?
A. The Social Security administration has very strict definitions of disability. In fact, nearly 70% of all disabled individuals who apply for disability benefits from Social Security are rejected. So, while you may qualify for disability benefits under an insurance company's guidelines, you are not automatically eligible for Social Security disability benefits.
Q. Can I receive additional disability benefits from Social Security?
A. Social Security disability benefits may be available to eligible individuals prior to age 65, depending on your salary and how long you've been paying Social Security taxes.
Q. Who can I call to get answers to my questions?
A. Prior to your enrollment, you can Vicki Devlin.
Q. How do I enroll in the plan?
A. Just fill out the online questionnaire or Steve Leshner and you will receive an information package to review.