Are There Such a Thing is Total Disability Insurance Income?

NoFault

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Are there such an insurance that will provide PERMANENT income for a particular being who is approved by many doctors after having a stroke that he/she can no longer work. Yet, she still qualifies for SSI, but if she has the DI insurance, does the DI pay her according to the plan she choose, in addition the the SSI?

I dont have any agency over in my area that specialized in this area, that's why I"m asking. I know probably about 200 people right now that have life ins, but want this kind of insurance...all under 40 years old...but they seen too many...that's why they're afraid of.
 
Of course there is such a thing, but the benefit usually goes only to age 65----or in some instances age 70. That is because Social Security benefits will kick in. Also, some DI policies will offset the SS benefit to reduce the premium. However, in the instance you describe, she is NOT eligible for any DI policy inasmuch as she is not working and is currently disabled! No insurance company wants to buy a claim! She should apply for Social Security Disabilty benefits if she has been disabled for at least 5 months. I don't know if SSI is available to a person on SS Disability, but I doubt it. To the best of my knowledge SSI is based on income and not on disability.
 
Wait though he seems to want information about a DI product that will pay a lifetime benefit and marketing it to younger people he knows who have life insurance. There are two carriers that have a life time benefit rider available on their DI products, Guardian/Berkshire and Metlife. The occupationas these people whave will determine which company is a good fit. Guardian looks more for professionals almost exlusively, while Metlife will offer their product to more manual labor type jobs.
 
Of course there is such a thing, but the benefit usually goes only to age 65----or in some instances age 70. That is because Social Security benefits will kick in. Also, some DI policies will offset the SS benefit to reduce the premium. However, in the instance you describe, she is NOT eligible for any DI policy inasmuch as she is not working and is currently disabled! No insurance company wants to buy a claim! She should apply for Social Security Disabilty benefits if she has been disabled for at least 5 months. I don't know if SSI is available to a person on SS Disability, but I doubt it. To the best of my knowledge SSI is based on income and not on disability.


This is what I mean. A Disability Insurance for people under 45 who has fulltime jobs, and in good health. But just incase they are disable from an accident or health reasons, and can no longer work that will pay them an income. If so, for how long will the benefit be pay? Permanently? And when he becomes disable, will he have to pay his premium in order to get the DI benefit?

I sell life through Assurity and just looked at their DI plans and it only pay for 24 months. I test out the Simplied for a 40 year old male, in perfect shape, no medical history, make over $40K a year, and the max they allowed is $2600. Yet he will be paying over $150 a month for a DI that if he becomes disable will only pay him $2600/month for 24 months. But if he qualifies for SSDB before the 24 month it will only be half of the $2600.

If I am correct, then dont you think DI is nothing but a big rip off?
 
NoFault. I definitely do not think DI is a ripoff. In fact for the person who has it, it is more important than life insurance. Life insurance is for the survivors of the insured, but DI is for the living, i.e., the insured person. Someone can get either totally or partiall disabled for many years----it can be more important to have that coverage to replace the loss of income than have life insurance for the family. However, I am not denigrating the need for life insurance, but disability insurance is an underserved need.

When a person goes on a disability claim under a DI policy they do not have to pay the premiums. The premiums are waived for the length of time the person is on the disability. In fact, some insurers will refund the premiums paid during the DI waiting period. As BNRTS mentioned there are insurers who offer a lifetime rider.

For more discussion on DI, you should go to the website www.disabilityforums.com where agents who specialize in DI discuss topics associated with disability insurance. It is an excellent source of information on the subject.:)
 
This is what I mean. A Disability Insurance for people under 45 who has fulltime jobs, and in good health. But just incase they are disable from an accident or health reasons, and can no longer work that will pay them an income. If so, for how long will the benefit be pay? Permanently? And when he becomes disable, will he have to pay his premium in order to get the DI benefit?

I sell life through Assurity and just looked at their DI plans and it only pay for 24 months. I test out the Simplied for a 40 year old male, in perfect shape, no medical history, make over $40K a year, and the max they allowed is $2600. Yet he will be paying over $150 a month for a DI that if he becomes disable will only pay him $2600/month for 24 months. But if he qualifies for SSDB before the 24 month it will only be half of the $2600.

If I am correct, then dont you think DI is nothing but a big rip off?

What type of occupation do these people have? That could effect the benefits available from the policy.

This sounds like someone with a labor intensive job. The premium, the benefit period, and the "thing" that reduces their benefit if they get social security (known as a SIS rider stands for Social Insurance Substitute). A lot of companies require SIS riders on higher risk occ classes.

As far as the benefit amount, that's about 78% of this person's income. Remember benefits are received tax free so long as premium are paid for with after tax dollars. Now how close is this benefit to their NET income?

Rip off? If you want to play the numbers game, they will make back in two years on claim what the premium would cost over the course of 34 years.

50% of all mortgage foreclosures are caused by disabilities

50% of all personal bankruptcies are caused by disabilities

The odds of a working male being sick or hurt for 6 months or more during his working years is 1 out of 3 for a working female it's slightly higher than 1 out of 2.

Most Americans don't even have the savings to make it 3 months on their savings.

Rip off?
 
These people are factory workers. Some are small business owners such as restaurants and auto repair shops.
 
$2600/month income (tax-free) equals $31k annual income. This is 75% of his pre-tax income. I would say that's pretty much total income replacement. To pay $1800 a year to protect $40k a year, this is hardly a ripoff.

NoFault, when it comes to DI you need to find a mentor who knows what they're doing, and split cases with him. You will make more money by earning 50% of every case rather than be ignorant and make 100% of nothing.
 
Do these people have Group LTD? You'll have a tough time supplementing incomes at that level if a group plan exists. But it would be a great added layer of benefit to the factory workers.

For the business owners this should almost be a no brainer. There's no one waiting to hold their hands if an illness or injury should strike.
 
If they are totally disabled they will qualify for SS Disability. In doing so they will also be eligible to receive Medicare after a two year waiting period. However, if SS determines that the disability actually began two years before filing, SS with back date the onset of the disability 24 months and the individual will receive a check for two years of disability and be eligible for Medicare immediately.

I have many Med Supp clients who are way under age 65 and on Social Security Disability who are receiving full SS benefits and are on Medicare.

Of, maybe I misunderstood the whole point of this thread and should have not posted.
 
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