Seeking Advice on LTD Insurance Coverage

[VolAgent]

Perhaps something has changed in the years since I studied insurance contracts in college and even sold DI, but non-can policies meant your premium could never increase . . . even if the liability is purchased by a successor carrier.

Guaranteed renewable policies were just that, guaranteed to renew. However the rate could be adjusted on a block basis.

Technically, both policy forms are guaranteed renewable, the difference being what happens to your rate.

Group LTD plans are neither guaranteed renewable or non-cancellable.

Thanks, I was starting to think I had gotten the definitions confused.

"You are totally disabled when both unable to perform the principal duties of the regular occupation, and not gainfully employed in any occupation."

You can find better definitions. after that comma, it's BS and makes the policy a narrow fit to collect.

I would not purchase just for those words after the comma. That's basically social security's definition.

Actually, Social Security says if you can do any job for gainful employment.

The portion after the comma simply says that you can't be disabled in your regular occupation, go get another job that you can perform and receive benefit. However, if you are unable to perform your regular occupation and are otherwise not employed, you receive benefit. It does not force you to seek out another job, it simply says if you do, then you don't get benefit. Although, with partial disability, many contracts would provide a portion of the benefit corresponding to the income lost. How many people who are disabled in their regular occupation are going to seek out another job if they are entitled to disability benefits under their DI policy?

 

[scagnt83]

I would get a clarification on the definition of disability from NWM.


It said: " ..., and not gainfully employed in any occupation."

It did not say "able to be gainfully employed in any occupation"

What it is saying is that you cant be actively employed at lesser occupation and still able to collect DI benefits.

Basically, if your a surgeon who gets hurt and now have uncontrollable shaking in your hands (now you cant be a surgeon), but you go get a job at a drive through to help make ends meet; you then would not be able to collect DI benefits. You would have to stay totally unemployed.


If it was any occ, it would say " not able to be gainfully employed in any other occupation."


I could be wrong. But I have never seen AnyOcc worded like that before. IMO, its missing a key element of phrasing for anyocc.
If you are serious about this policy I would get clarification from the company on the wording.


I also agree that your policy does not cost $150/year.

 

[somarco]

$150/yr might be possible if the group LTD is used as an offset to the individual DI plan and NWM was offering a minimum benefit of say $50/mo, a long elimination period and/or shortened benefit period.

 

[scagnt83]

non-can policies meant your premium could never increase . . . even if the liability is purchased by a successor carrier.

Guaranteed renewable policies were just that, guaranteed to renew. However the rate could be adjusted on a block basis.

Technically, both policy forms are guaranteed renewable, the difference being what happens to your rate.
.

Thats correct.
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Group LTD plans are neither guaranteed renewable or non-cancellable.

True GI group plans are usually not.

When you get into SI that can change.
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$150/yr might be possible if the group LTD is used as an offset to the individual DI plan and NWM was offering a minimum benefit of say $50/mo, a long elimination period and/or shortened benefit period.

Good point.

But whats the point of a $50/month benefit??

To be completely honest its not worth the time, hassle, expense, etc. and thats for both the agent and the client.


Plus you made a good point about how comprehensive the group plan really is. There is a good chance that the $50/month will pay before the group plan ever does.


This is a classic case of not having your insurance coordinated.
Whoever is proposing the NWM, should have reviewed the terms of the group plan before ever proposing a thing.

There is no way to know what is suitable without seeing the group plan first.

 

[LGilmore]

Non Can, means as well as a set premium, that the company can't cancel the policy in the same way as a group policy could be.

That is why some carriers who have got "out' of DI sold their block to other carriers. If non can wasn't a factor, they could decide to close the plans.

 

[minoly]

I'll check my paperwork again regarding the rate. If I understand correctly, everyone here is saying that $150/year is too low of a rate? I'm very new to this whole insurance deal so I'm loss at the "a $50/month benefit" comment.

A couple of you mentioned Guardian but they don't seem to have very good reviews. I don't know how legitimate the website is but people seem to be complaining about them not standing behind their health insurance coverage at insurance.freeadvice.com.

 

[Full Throttle]

On a "guaranteed renewable" plan, the carrier could terminate an entire block of policies? That's not my understanding (maybe I'm misunderstanding you). Can you site a reference?

 

[somarco]

I don't write much DI and never did. I don't believe a carrier can drop a block of guaranteed renewable plans. They can stop offering new plans, raise premiums as much as they want or sell the block, but I don't think they can terminate the block.

Guaranteed renewable in DI is different from major medical.

 

[Franz Kafka]

I would always go for higher and/or longer benefit period over the "true occ" for the same amount of premium. I may go for non-can over guaranteed renewable just because I don't trust any insurance company regardless of who they are. (But then that's just me)

 

[scagnt83]

I don't write much DI and never did. I don't believe a carrier can drop a block of guaranteed renewable plans. They can stop offering new plans, raise premiums as much as they want or sell the block, but I don't think they can terminate the block.

Guaranteed renewable in DI is different from major medical.

Thats right.

The coverage clause of GR DI says that it cannot be cancelled.

So a carrier could not drop a block of GR DI.
But they can reduce coverage and raise rates as much as the DOI will allow.

When a policy is considered NC, it is referring to the entire terms of the agreement, nothing can change at all... ever.
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I would always go for higher and/or longer benefit period over the "true occ" for the same amount of premium. I may go for non-can over guaranteed renewable just because I don't trust any insurance company regardless of who they are. (But then that's just me)

I would disagree.
It doesnt take much to be a medical transcriptionist or a greeter at walmart...

If someone is professionally trained for their occupation, or their occupation requires a good deal of physical ability; then the own occ is extremely important (imo)

I would take own occ with a lower benefit over any occ with a higher benefit. Own Occ is much more likely to pay over any occ.
What good is the extra benefit when it doesnt pay?