Claims for Software Development Consultant

[oozo]

I am thinking about dropping my DI of 8 years as I cannot think of any good claim reason that would ever be honored as to why I cannot do "my specific job", but yet would still be paid on claim for doing work of another nature - something else. I feel like no matter what could happen, the DI company would find a reason why I will still be able to "do my job" as listed above, because it is a white collar, business, basically a desk job. I fly to work if need be as I am self-employed...does claustrophobia regarding flying mean I "cannot do my job"?

Unless an accident to physically disable my "hands from keying", or blindness that disables "my eyes from seeing" a computer monitor, or deafness that prevents me from hearing users talk at meetings, what else could possibly happen where the company would consider that I cannot be a "Software Development Consultant" anymore, and then allow a claim, and pay me to continue to work at another career? Would they confine me to a region where I would only have to drive?
Would they state that I had to take a full time job for just one client that is local? What can they do to me to make me still able to "do my specific job"?

I am almost into lapse....can anyone give me a good reason to make me rethink my decision to drop this policy?

Also, it is only a 5 yr benefit and I am now approaching 60....meaning that when I am 61, I would only get 4 years of benefit but have paid for 5 all years till now.

Thank you for input.

OOZO

 

[VolAgent]

Accident or illness leaves you with severe and frequent headaches and unable to concentrate.

As you mentioned, anything that would cause the loss of use of your hands, eyes or ears.

Accident or illness that causes severe fatigue, to the point you are unable to work for several hours at a time.

I'm sure there are more, but that is off the top of my head.

Now, based on your situation, it may be of limited and benefit and ok to drop. You are close to the point where the coverage is no longer useful anyway. But don't think there isn't something that could leave you able to receive DI benefits. There are plenty of things that could happen.

 

[scagnt83]

I recently helped with a DI claim for a web designer. He works from home in his living room on a laptop.

His wife slammed the door of their suv on his hand (by accident). He is looking at multiple surgeries along with at least a year of rehab.
The doctor said that he will be lucky to be able to type again in 9 months time... more likely it will be a year.

Also, illness accounts for the majority of DI claims.

 

[BNTRS]

I am thinking about dropping my DI of 8 years as I cannot think of any good claim reason that would ever be honored as to why I cannot do "my specific job", but yet would still be paid on claim for doing work of another nature - something else.

So by the sounds of it, you have a policy that provides pure own-occ coverage. And, like a lot of professionals who work in a much less precise atmosphere, there's some question on how crucial that is.

In your case, it may no be worth it. If this coverage is provided by rider, you could drop the rider. If the definition of disability is pure own-occ by default (i.e. no rider) you won't likely be able to just drop that definition.

Focusing on what could put you on claim is (I'd argue) less important than considering what happens if on claim. At 60, if you feel that you've amassed enough assets to be ok if you could no longer work than dropping your disability insurance won't likely pose any problems. That's the point of disability insurance, to ensure that if you don't yet have enough money to retire, you are financial sound if you're unable to work.

 

[oozo]

Thank you everyone. I think I will trade in my DI for LTC.

OOZO