I can't speak to every private disability policy, but, as I stated in my original post, my policy will pay the agreed-upon amount on documented disability -- regardless of what I am earning at the time of disability -- even nothing. The discussion point undoubtedly would be fitness for whatever I was doing at the time.Originally Posted by try2bfrugal
Success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome. - Booker T. Washington
Oaky, sorry I forgot you did mention that in your first post.
Steve, good thread.
From what I'm able to put together from your posts. This policy is good til you turn 65,which will occur in about 9 yrs.So roughly $11,000 remaining in premium payments for 9 more years of coverage. Coverage will pay you $1800 a month for a disability.
On the surface it appears that you are getting good coverage for the price you are paying.I would dig deeper into the policy until I was confident I understood what was and was not covered.Would an illness be covered,or is it just for personal injury?
A friend was telling me this past weekend that his brother-inlaw recently fell while changing a light bulb. The brother-inlaw is now paralyzed from the waist down.I'm sure this man would have loved to have your policy.You just never know.
Thanks, cx3. Everything you mentioned is pretty much correct. As I read the policy, anything that disables one from the primary activities of one's occupation is considered "disability" once a 60-/90-day period has passed. I'm covered whether it's a work accident, a car accident on my own time, me jumping off a diving board, or a bacterial infection. This policy even pays in case of complications of pregnancy (not my worry!).
As an IT geek, below-waist paralysis likely would not constitute an own-occupation disability since I should still be able to do most of my IT-geek-type job responsibilities even if I were in a wheelchair. If I were a firefighter, though, below-waist paralysis pretty much means you take a desk job in the fire department because you won't be responding to fire calls anymore. I would guess that, in the latter case, there would be some discussion if the desk job did not pay as well as actively fighting fires, so maybe they would pay the difference up to the policy amount.
I got the policy decades ago, when it was impressed upon me that I -- indeed, anyone -- was far more likely to be injured long enough to be out of work rather than just dead. Still holds true -- I know many friends and colleagues who were laid up enough to exhaust their sick leave and short-term disability. Some of them were lucky enough to have good long-term disability insurance. Very very few colleagues just up and died.
Success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome. - Booker T. Washington
One thing you need to look at also is that SSDI is only good if you have worked, and contributed, into SS in the last 10 years before you were disabled. It will generally state if you are eligible for SSDI on your annual SS statement. Mine for example says that I am not eligible for SSDI because I have not worked and contributed into the system in the last 10 years. This may be the case for other early retirees too - as well as others (again like I was) who are in public sector jobs that don't pay into SS. No pay - no disability benefit.
I'm also confused by how disability insurance works - whether it's SSDI or private insurance. I get a military disability pension because I suffered an injury in the line of duty. I get paid for the loss I suffered irregardless if I can continue to do my job (in my case I couldn't so had to change careers but actually got a much higher paying job) or do another equally-paid job. For instance if you lose a leg while in the service you will be compensated for that loss by a certain percentage for the rest of your life even if you are still able to hold some kind of job. It doesn't seem that way with SSDI or with private insurance. It seem s that those are more based on "whats your income been and how much do you need to live on" rather than the nature of the disability. Although you said your policy was based on the type of disability you suffer and how it will impact your ability to do your profession rather than the amount of your income. So I guess the question is - if a disability isn't sever enough to effect your ability to do your job, but may impact you in other ways so that work is difficult or you need other things that are costly to aid you in funtioning in your life, will you get any pay? Doesn't sound like it.
In that situation, I don't think I would get anything, either. Then again, we-all can do lots of things on our own which make life difficult -- bad backs/hips/knees, etc. -- that may make our work and private lives more difficult and ... well, tough toenails, as they say. I suppose that's where medical insurance would come in -- for durable medical aids, additional therapy, etc.
Success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome. - Booker T. Washington
Yeah that's what I think too - they won't pay anything unless you are permanently disable to the point where you can't do your job any longer. What if it was just a temporary disability? Would they cover you until you were well or is it just for permanent disabilities? It's all confusing to me.
I think there's a little confusion here. In your post, you said a "if a disability isn't sever enough to effect your ability to do your job", would they pay? And I replied that they would not because you could still do your job. This is just job insurance, not long-term care insurance. If I suffer an injury that does not impair my ability to do my job, then the DBL insurance company no longer cares. It's kind of like if someone drove your car into your garage door. The auto insurance company doesn't care a bit about the garage door or anything it's connected to; they only care if your car is damaged -- and even then, only about damage beyond your deductible.
On my policy, temporary disability is covered -- even pregnancy. So if I were female and my job was loading packages and luggage onto an airplane and I became pregnant and the doctor told me I had to be on bedrest for a couple of months, this policy would pay from the time I exhausted sick leave/short-term disability until the pregnancy was over. Of course, you are examined by their selected doctors to check your condition/abilities. And that's where early morning's DH has had some problems with their insurer.
In many ways, though, you're not wrong on the confusing part. There was a regular Chinese menu of options when I got this policy -- "any occupation"/"own occupation", amount of coverage, option to buy additional coverage at key dates, etc. As with most private insurance, however, if you're willing to pay their price you can get what you want.
Success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome. - Booker T. Washington
OK I understand now - saying that it is "job insurance" makes it much clearer. So in effect, if you had a desk job and lost both your legs to injury or illness they wouldn't pay you anything at all to compensate for THAT disability because it wouldn't affect your ability to do your job. Even if it did affect your ability to do other day to day things or increased your costs to do day to day things you could no longer do and had to hire out for. Well poop - that kind of sucks :-)!
You've got it now -- on all counts!
Success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome. - Booker T. Washington
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