Disablity vs Occupational Accident ???

[Tim Resnick]

Hi Friends,

I Googled Occupational Accident Insurance and got an answer that was similar to Disability Insurance.

Are they one and the same?
Some companies use them intermittently?

Thanks for your input...

 

[Tahoe Ray]

Hi Friends,

I Googled Occupational Accident Insurance and got an answer that was similar to Disability Insurance.

Are they one and the same?
Some companies use them intermittently?

Thanks for your input...

They are not the same.

Those terms should also not be used interchangeably.

Anything "occupation specific" is essentially workers comp or accidental DI which generally sucks (but is still solid if you can't find other options).

Traditional DI covers anything that prevents you from doing your job (depending on your definitions) and includes most disability claims.

Apples and hand grenades as far as I'm concerned.

 

[Tim Resnick]

Thanks Ray.

I'm reading a lot of trades people have Occupational Accident.

Like Carpenters for ex.; so if a Carpenter gets injured on the job, I think the way Accident works is they pay a lump sum (after some time has pass). And i think it has to be 'Catastrophic' (unable to be a Carpenter anymore)???

Not sure how a DI policy would work in that case?

Can you give me an example of how a DI policy would be better for a Carpenter than Accident Insurance?

thanks very much!


.

 

[Tahoe Ray]

Thanks Ray.

I'm reading a lot of trades people have Occupational Accident.

Like Carpenters for ex.; so if a Carpenter gets injured on the job, I think the way Accident works is they pay a lump sum (after some time has pass). And i think it has to be 'Catastrophic' (unable to be a Carpenter anymore)???

Not sure how a DI policy would work in that case?

Can you give me an example of how a DI policy would be better for a Carpenter than Accident Insurance?

thanks very much!


.

Your carpenter gets MS and can't swing a hammer anymore.

A decent long term DI policy will pay him monthly benefits after the elimination (waiting) period for as long as his policy is set up to do so (normally from 2 years all the way to 65+, depending on plan design).

Accident and occupation-only policies would pay nothing.

Same carpenter cuts his hand off with a circular saw, almost any DI policy (including the one my example) would pay, unless it specifically excludes on the job injuries.

 

[adjusterjack]

Tim, let's start by using correct terminology.

Workers Compensation is insurance purchased by employers to cover employees for injuries or medical conditions arising out of and during the course of employment. It provides for medical treatment and a weekly wage replacement, generally 66 2/3 after a one week waiting period. When a permanent partial or total disability occurs the employee could be eligible for a lump sum settlement depending on the extent and nature of the disability. Workers Compensation insurance is mandatory by law, though some states have a variety of exceptions. In many states a one person business may buy its own coverage. Where Workers Compensation is present it is the only recourse an employee has against an employer.

Disability Insurance covers a person for off-the-job injuries, generally pays a monthly benefit, sometimes includes a lump sum benefit for loss of limbs, sight, hearing, excludes job related injuries or, at least has a coordination of benefits with other coverage so an injured person can't "double dip." Disability Insurance is purchased privately but some states have a government run program that the employee pays into.

One policy is not "better" than the other because they cover two different things and a wise person should be covered by both

 

[Tim Resnick]

Your carpenter gets MS and can't swing a hammer anymore.

A decent long term DI policy will pay him monthly benefits after the elimination (waiting) period for as long as his policy is set up to do so (normally from 2 years all the way to 65+, depending on plan design).

Accident and occupation-only policies would pay nothing.

Same carpenter cuts his hand off with a circular saw, almost any DI policy (including the one my example) would pay, unless it specifically excludes on the job injuries.

I see,...so some DI Companies will not write a Carpenter? (for on the job accidents?)

What are some other trades that are difficult to get covered?

Thanks Ray!

 

[LSchultz]

Most disabilities (about 95%) are due to illnesses, not accidents. The cost for disability insurance may be slightly higher than accident only but at least there is a chance it will pay when you need it!

 

[David Block]

As was said before, occupational accident is specific to the cause; i.e., a loss resulting from one's occupation due to an accident. It is a specific form of coverage and not as broad as a traditional disability policy. Accident plans will often pay a lump sum and some accident only disability plans will pay a weekly or monthly benefit. The reality is that a traditional disability policy will not only pay in the event of an accident (work or otherwise) but if a disability is due to a sickness too. In addition, the loss does not have to be occupationally related.

As regards your comment about the trades receiving occupational accident coverage, part of that could be workers compensation, part could be a union benefit, and part could be a voluntary plan sold by companies like AFLAC, Colonial Life, etc.

As for what occupations can get coverage, the only limitation I am aware of are some of the more hazardous ones like miners, explosive experts, etc. Some companies will not cover anyone working from home or will limit their benefit (depending on occupation and duties). In my opinion, what any good agent or broker should be looking to accomplish for their client is to provide a policy that is the least restrictive and will pay regardless of where an accident (or illness) occurs. Keep in mind that the value you are providing to the client with a good disability policy is far superior to that of a more restrictive accident only or occupational only policy.

 

[Tahoe Ray]

Disability Insurance covers a person for off-the-job injuries, generally pays a monthly benefit, sometimes includes a lump sum benefit for loss of limbs, sight, hearing, excludes job related injuries or, at least has a coordination of benefits with other coverage so an injured person can't "double dip." Disability Insurance is purchased privately but some states have a government run program that the employee pays into.

One policy is not "better" than the other because they cover two different things and a wise person should be covered by both

This is largely not true.

Disability insurance (group or individual) can and most do cover you for any reason you can't do your job, regardless of where it occurs.

That's why more dangerous occupations are tougher to insure.

The coordination of benefits largely comes into play with social supplements and some group.

Individual DI will not normally offset (you still need the income loss). The applicant will be subject to the I/P limits of each carrier when they purchase their policy, however.

There are plenty of DI policies that even let you go back to work in another profession, earn money, and stay on claim.

 

[Tahoe Ray]

I see,...so some DI Companies will not write a Carpenter? (for on the job accidents?)

What are some other trades that are difficult to get covered?

Some might not (or the prices are too high for anyone to buy it) but many will.

Tough occupations are high risk or high stress. Stuntmen, commercial airline pilots, and a host of other professions.

That being said, Lloyd's of London coverholders in the US (Petersen, Exceptional, etc.) Even have policies for some of these professions.

Thanks Ray!