Hi frenz...would anyone of you care to tell me about the different channels of disability coverage?
Total Comments: 4
Posted: Thu Mar 13, 2008 11:21 am Post Subject:
You are going to need to expand this question I'm not understanding what you mean by 'channels'...there are private disability policys, policys thru ones employer, ss....please explain in greater detail what you want to know...thanks
Posted: Thu Mar 13, 2008 11:27 am Post Subject: ST features
Short term disability...???
# It is actually a kinda sick leave. # Offers replacing wages either on the Day-1 of a mishap or on the 18th day of your getting into a hospital. # Has a brief waiting period compared to long term disability which might stretch from a month -2 years. # ST benefits could also be achieved within 90 days ( post that period the LT benefits would come into effect). # Costly premiums # May come as a part of a comprehensive coverage.
Posted: Thu Mar 13, 2008 11:50 am Post Subject: my mistake..
Hi...since I'm still online...I must say that Lori got my point!
I simply couldn't explain the sources or channels through which i might procure disability insurance.
Posted: Fri Mar 14, 2008 05:19 pm Post Subject:
Hi Bubbles,
Welcome to the community. You should get some good information here, just remember to provide as much background info as you can in your original post, ok?
You asked:
Hi frenz...would anyone of you care to tell me about the different channels of disability coverage?
If I'm taking it correctly, I think you're asking about the different ways one can get covered in the event of a disability. Obviously, you know that the coverage must be applied for and issued (except for government coverage through SSDI- another story)) prior to the disability occurrence. No company will issue an individual disability income (DI) contract if you're already disabled.
So, here's a little info for ya, I hope it helps!
Short-term disability (STD) is most commonly offered by employers as part of their group insurance benefits, and is not easily found in the individual insurance markets. It's out there, but pretty rare. STD will normally provide coverage for no longer than one year. Commonly, you'll see 180 days of coverage available under STD. It MAY have what's called an "elimination" period. Think of this as a deductible, but in terms of time instead of dollars. STD coverage will have elimination periods generally ranging from 0-14 days. If you have an elimination period of 7 days, your disability must last longer than that 7 days in order to receive any benefits. You will not be reimbursed for the first 7 days of loss. Remember- that's your "deductible" and it's fully on you.
# It is actually a kinda sick leave.
# Offers replacing wages either on the Day-1 of a mishap or on the 18th day of your getting into a hospital.
I wouldn't consider it "sick leave." In order to receive DI payments, the insured must meet the definition of "disabled" as laid out in the policy or contract. This is where it gets a little weird with the different definitions: the policy coverage could be triggered by various definitions that must be met. Is the coverage based on "any occupation," "own occupation" or a "reasonably suited" definition? For "sick leave," you just have to have be sick...the flu would qualify! More on this if you need...just ask.
As well, I've been dealing with DI for more than 20 years, and the time frames mentioned in your reply as quoted above must be specific to a certain carrier....
Then there's Long-term disability (LTD) which normally provides benefits for 2 years or longer. It will almost certainly have an elimination period of anywhere between 90-180 days. Again, if the disability does not last beyond the waiting period- no coverage.
Most group and individual policies will not pay you more than 50-70% of your pre-disability gross income. You cannot profit due to a disability.
Then there's Social Security Disability Income, or "SSDI" Good luck with this puppy. In order to qualify for SSDI, there are a ton of benchmarks you'll have to meet:
1. Are you "fully insured" through the Social Security program? More on this if asked, ok?
2. Is your disability expected to last at least 12 months or result in your death?
3. SSDIs definition of disability is much more strict than what's found in group or individual policies. The feds state that the insured must be "unable to find substantial employment anywhere in the U.S. economy." Also remember that you're at the mercy of your case worker...how do they feel about you? A small word of advice- your case worker can be your best friend or your worst enemy. Treat them with respect and honesty. Remember, they're civil servants!
The benefit amount as to what you'll receive from SSDI is based on what you have paid into the S.S. system, and is indexed for inflation. Your benefit amount is based on what's called your "Primary Insurance Amount" (PIA) and what's called the "Average Indexed Monthly Earnings" (AIME). Your AIME is based on what you've paid into the system, and the PIA is your actual check amount, which is a percentage of your AIME. :?:
Does this sound confusing? Well...IT IS! Most have no clue on SSDI, so join the club. Interestingly- almost 70% of SSDI claims are initially denied, and the average wait time for approval is just about one year. :(
Finally, SSDI has a 5-month elimination period, with benefits paid at the end of the sixth month. If a person has to wait, for example, 18 months to get approved for SSID, the payment will be retroactive to the end of the waiting period, not to the first day of disability.
If you're looking for more info- just ask. There are many people here who can help! Sorry about the legth of my post...
Posted: Thu Mar 13, 2008 11:21 am Post Subject:
You are going to need to expand this question I'm not understanding what you mean by 'channels'...there are private disability policys, policys thru ones employer, ss....please explain in greater detail what you want to know...thanks
Posted: Thu Mar 13, 2008 11:27 am Post Subject: ST features
Short term disability...???
# It is actually a kinda sick leave.
# Offers replacing wages either on the Day-1 of a mishap or on the 18th day of your getting into a hospital.
# Has a brief waiting period compared to long term disability which might stretch from a month -2 years.
# ST benefits could also be achieved within 90 days ( post that period the LT benefits would come into effect).
# Costly premiums
# May come as a part of a comprehensive coverage.
Posted: Thu Mar 13, 2008 11:50 am Post Subject: my mistake..
Hi...since I'm still online...I must say that Lori got my point!
I simply couldn't explain the sources or channels through which i might procure disability insurance.
Posted: Fri Mar 14, 2008 05:19 pm Post Subject:
Hi Bubbles,
Welcome to the community. You should get some good information here, just remember to provide as much background info as you can in your original post, ok?
You asked:
Hi frenz...would anyone of you care to tell me about the different channels of disability coverage?
If I'm taking it correctly, I think you're asking about the different ways one can get covered in the event of a disability. Obviously, you know that the coverage must be applied for and issued (except for government coverage through SSDI- another story)) prior to the disability occurrence. No company will issue an individual disability income (DI) contract if you're already disabled.
So, here's a little info for ya, I hope it helps!
Short-term disability (STD) is most commonly offered by employers as part of their group insurance benefits, and is not easily found in the individual insurance markets. It's out there, but pretty rare. STD will normally provide coverage for no longer than one year. Commonly, you'll see 180 days of coverage available under STD. It MAY have what's called an "elimination" period. Think of this as a deductible, but in terms of time instead of dollars. STD coverage will have elimination periods generally ranging from 0-14 days. If you have an elimination period of 7 days, your disability must last longer than that 7 days in order to receive any benefits. You will not be reimbursed for the first 7 days of loss. Remember- that's your "deductible" and it's fully on you.
# It is actually a kinda sick leave.
# Offers replacing wages either on the Day-1 of a mishap or on the 18th day of your getting into a hospital.
I wouldn't consider it "sick leave." In order to receive DI payments, the insured must meet the definition of "disabled" as laid out in the policy or contract. This is where it gets a little weird with the different definitions: the policy coverage could be triggered by various definitions that must be met. Is the coverage based on "any occupation," "own occupation" or a "reasonably suited" definition? For "sick leave," you just have to have be sick...the flu would qualify! More on this if you need...just ask.
As well, I've been dealing with DI for more than 20 years, and the time frames mentioned in your reply as quoted above must be specific to a certain carrier....
Then there's Long-term disability (LTD) which normally provides benefits for 2 years or longer. It will almost certainly have an elimination period of anywhere between 90-180 days. Again, if the disability does not last beyond the waiting period- no coverage.
Most group and individual policies will not pay you more than 50-70% of your pre-disability gross income. You cannot profit due to a disability.
Then there's Social Security Disability Income, or "SSDI" Good luck with this puppy. In order to qualify for SSDI, there are a ton of benchmarks you'll have to meet:
1. Are you "fully insured" through the Social Security program? More on this if asked, ok?
2. Is your disability expected to last at least 12 months or result in your death?
3. SSDIs definition of disability is much more strict than what's found in group or individual policies. The feds state that the insured must be "unable to find substantial employment anywhere in the U.S. economy." Also remember that you're at the mercy of your case worker...how do they feel about you? A small word of advice- your case worker can be your best friend or your worst enemy. Treat them with respect and honesty. Remember, they're civil servants!
The benefit amount as to what you'll receive from SSDI is based on what you have paid into the S.S. system, and is indexed for inflation. Your benefit amount is based on what's called your "Primary Insurance Amount" (PIA) and what's called the "Average Indexed Monthly Earnings" (AIME). Your AIME is based on what you've paid into the system, and the PIA is your actual check amount, which is a percentage of your AIME. :?:
Does this sound confusing? Well...IT IS! Most have no clue on SSDI, so join the club. Interestingly- almost 70% of SSDI claims are initially denied, and the average wait time for approval is just about one year. :(
Finally, SSDI has a 5-month elimination period, with benefits paid at the end of the sixth month. If a person has to wait, for example, 18 months to get approved for SSID, the payment will be retroactive to the end of the waiting period, not to the first day of disability.
If you're looking for more info- just ask. There are many people here who can help! Sorry about the legth of my post...
InsTeacher 8)
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