AustenNut wrote:Thanks for the replies so far. Maybe it wasn't clear from my first post, but because I am a teacher vested in the retirement system, I would qualify for a disability benefit. Currently that is $900/month. I would not be eligible for Social Security disability payments. If I became disabled, I would not want to live off of $900/month for the rest of my life, hence the reason why I would want to get additional disability insurance.
Among the holes in my group LTD policy is that after two years, it becomes an any occupation policy. So if I can work as a greeter at Wal-Mart, I'd have to do that and lose my disability benefit. And there's a big pay difference between my salary and that of the Wal-Mart greeter. Also, the group LTD policy would be decreased by the amount of my state teacher retirement disability amount, so again, we're talking about a significant drop in income. And my employer does not subsidize any part of the group policy.
As far as the differences in what the DI companies are willing to give out, yeah, it's pretty amazing. I gave all the agents the same info, and this is what I got back. It turns out that the comapanies deal with my teacher disability pension differently. Some consider it as insurance and others don't (that's the general gist I've gotten). It did decrease the amount of coverage I was able to get, as I had started to get quotes before learning about the state disability pension, and had to contact the agents again to have quotes that reflected the new information. But it does affect which company I'll end up applying with.
I would make sure that MetLife, MM, and NWM are calculating the benefit amount correctly. Not really sure how NWM came up with a monthly benefit of $2717 since the amounts are usually even numbers. Let's see if I can get this straight:
1. You have a retirement disability program in place which you cannot opt out of
2. You have a group LTD policy which you can opt out of
If that is correct, are you opting out of the group LTD to get the benefit amounts that you were quoted? Or is this in addition to both of those programs?
In regards to the Guardian insurance, the Guardian Plus Limited definitions seemed pretty good. Why whould I want the flagship series over the limited one?
The differences between the two policies are as follows:
-Definition of disability with PP Limited is a “modified own-occupation” definition. The “true own-occupation” definition can be included for an additional charge. The modified definition is as follows: “Solely due to Injury or Sickness, You are not able to perform the material and substantial duties of Your Occupation and You are not Gainfully Employed” while the true own-occ definition is “Solely due to Injury or Sickness, You are not able to perform the material and substantial duties of Your Occupation. You will be Totally Disabled even if You are Gainfully Employed in another occupation so long as, solely due to Injury or Sickness, You are not able to work in Your Occupation. If you have limited Your Occupation to the performance of the material and substantial duties of a single medical specialty or to a single dental specialty, We will deem that specialty to be Your Occupation”
-30-day and 60-day elimination periods not available with PP Limited (a 90-day EP is still most common though given the pricing)
-Residual disability with PP Limited requires a 20% loss of income and a loss of time or duties, while the regular PP only requires a 15% loss of income
-Recovery benefit under the residual benefit for PP limited requires 20% loss of income, regular PP only requires 15% loss of income
-COLA with PP Limited is tied to the change in the Consumer Price Index with a maximum of 3% compounded per year, while COLA with regular PP is 3% compounded regardless of CPI change
-PP Limited has a 24-month limitation on mental/nervous benefits, regular PP is unlimited. Mental/nervous claims are about 9% of all disability claims.
-PP Limited has a “Benefit Purchase Rider” instead of the Future Increase Option rider that is available with regular PP. The FIO rider allows you to add more coverage regardless of health when your income qualifies and is available at each policy anniversary. The Benefit Purchase Rider allows you to add more coverage every 3 years instead. Since the premium for increases is based on the age at which you exercise them, having to wait 3 years to add more benefits could cost you more over the life of the policy.
-Graded Lifetime Benefit rider and Lump Sum Disability rider are not available on PP Limited.
The Provider Plus policy costs 20-30% more than Provider Plus Limited.