Seeking Advice on LTD Insurance Coverage

[stockholm]

Own Occupation / Any Occupation

If the disability income protection policy has a (partial disability Provision), benefits may be payable if the insured is able to work only part time or suffers a less than total disability.
Own occupation defined: total disability requires that the insured be unable to perform his or her own occupation as a result of an injury, accident, illness. From a policy owners standpoint the own occupation disability income protection policy is more beneficial it's also more expensive and difficult to qualify for. Often disability polices qualify total disability in two steps, using both own occupation and any occupation, these policies will provide initial benefits based on the own occupation definition for a specified period of time then change the qualifying basis to the any occupation definition.


Any occupation
Total disability requires being unable to perform any occupation he or she is reasonable suited by reason of education, training or experience in order to qualify for disability benefits.

Make sure you add waiver of premium to your policy

 

[Franz Kafka]

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?

Read my post again. I said "True Own Occ". I'm sure you know the difference.

 

[LGilmore]

(maybe I'm misunderstanding you). Nope, my bad.

Having worked for companies that no longer want to sell a product they can "price" the class out of business in a garanteed renewalable. while rates have to be approved, not that hard for a company to price a product out of business.

I also think the poster could do better for primary definitions of disability in this case. I don't like the not working in other employment wording.

 

[somarco]

buy additional LTD coverage outside of what I currently have through work.

agent at Northwestern Mutual provides me with an annual quote of $150.

I don't want to sacrifice quality for price

I'm loss at the "a $50/month benefit" comment.

To get this back on track, you want to buy ADDITIONAL coverage (your words), which I interpret to mean supplemental to your existing group LTD plan.

That could mean that is pays in addition to your current plan (which leads to the $50/mo speculation) or it could pay after your current benefits expire (which might mean pays after 2 yrs of disability).

Either of these, plus a few other possibilities, could substantiate an annual premium of $150.

For the most part, group LTD and individual DI from a quality carrier is apples & oranges.

Group LTD plans have a weak definition of disability and lower likelihood of paying out vs a good individual DI plan. Group LTD benefits are generally taxable while individual DI benefits are not.

In other words, if quality and value is what you want, you should consider dropping the group LTD and replace it with a quality individual DI plan.

 

[VolAgent]

In other words, if quality and value is what you want, you should consider dropping the group LTD and replace it with a quality individual DI plan.

Sadly, that is hard to do. Most carriers will limit his coverage by the amount he is eligible for from the group plan, even if not elected. Since individual DI plans don't coordinate, he could drop the group, get the full amount of individual DI, and get the group back. He'd soon be over-insuranced and ripe for a claim.

 

[BNTRS]

Wow, how did I not see this until just, now?

At OP:

Regarding NML, the definition you are providing is NML's base definition, which is a modified own occ def: On claim if you can't do what you normally do, but can't work elsewhere. NML has a rider to make it true own occ, and I believe you said you worked in HR, so you should be able to have this rider on a maximum payout basis.

NML's residutal benefit (i.e. partial disability benefit) requires two triggers in order to receive benefit, there must be a loss of time or duties performed and a loss of income of at least 20%. There are other companies that provide benefits with just loss of income, no loss of time and or duties is required.

Guardian has been mentioned as a quality company, that's technically incorrect (sort of). Berskhire Life is actually the company that has the 5 star disability product (Guardian bought them about 11 years ago but they remain structured as a fully owned stock subsidiary with their own board of directors, financials, underwriters, etc--i.e. they operate virtually independently). Berkshire's provider plus is the contract you want to look at.

Guardian's hasn't been a serious contender in the Health insurance industry in decades, and they took a lot of heat about a year and a half ago for closing a block of business that very seriously negatively impacted a family in NY (well actually they lived in FL, but maintained a residence in NY because if they didn't they'd loose their health insurance policy) who has a sone with some expensive medical bills.

Berkshire has the best contract language. I don't think anyone is going to pick a fight about that. There are others who can get close. NML is ok, a lot of office workers buy their disability insurance, but there are other carriers out there that can give you the same coverage they will for less in most cases. And there are other carriers that, for a little more, will give you a lot better coverage.