New Teacher - Long Term Disability $1,600/mo - $35/mo fee

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gator1
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New Teacher - Long Term Disability $1,600/mo - $35/mo fee

Post by gator1 » Tue Sep 03, 2013 6:46 pm

I'm a Brand New Teacher and a company called American Fidelity Assurance Company came to our school and sold us Long Term Disability. We had to get it that day so I signed up for it. It's $35/mo and would pay out $1600/mo for as long as I was disabled. It would take 31 days for it to go in effect.

My Dad read over it and said he thought $35/mo was too high and to look at other companies.

What do you guys think? IS that a good deal or bad deal and is that a reliable company?

Please advise, thank you!

dhodson
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Re: New Teacher - Long Term Disability $1,600/mo - $35/mo fe

Post by dhodson » Tue Sep 03, 2013 7:10 pm

Why did you have to sign that day?

I assume this is a group policy. Group polices are weaker than individual but cheaper.

Brudude is an agent here who often posts on di. Might want to ping him.

livesoft
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Re: New Teacher - Long Term Disability $1,600/mo - $35/mo fe

Post by livesoft » Tue Sep 03, 2013 7:30 pm

I would say that for most folks LTD is covered by SSDI which you already pay for. Short-term disability is much more likely. I would not buy such a LTD policy myself.
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Re: New Teacher - Long Term Disability $1,600/mo - $35/mo fe

Post by sschullo » Tue Sep 03, 2013 7:39 pm

Who told you besides the sales person that you had to get it that day?
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JMacDonald
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Re: New Teacher - Long Term Disability $1,600/mo - $35/mo fe

Post by JMacDonald » Tue Sep 03, 2013 7:51 pm

Does you have sick days with your school district? If you have sick days, do they accumulate?
If so, then I would build up the sick days and let that be your disability plan.
The $35 a month can be used to build up an emergency fund rather than give it to an insurance company.
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Re: New Teacher - Long Term Disability $1,600/mo - $35/mo fe

Post by madbrain » Tue Sep 03, 2013 8:10 pm

livesoft wrote:I would say that for most folks LTD is covered by SSDI which you already pay for. Short-term disability is much more likely. I would not buy such a LTD policy myself.
The SSDI definition of disability can be very hard to meet and it can take a very long time to get a determination. An LTD policy may still be beneficial if it is less restrictive and processed faster.

http://articles.washingtonpost.com/2013 ... ity-income

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Re: New Teacher - Long Term Disability $1,600/mo - $35/mo fe

Post by madbrain » Tue Sep 03, 2013 8:13 pm

gator1 wrote:I'm a Brand New Teacher and a company called American Fidelity Assurance Company came to our school and sold us Long Term Disability. We had to get it that day so I signed up for it. It's $35/mo and would pay out $1600/mo for as long as I was disabled. It would take 31 days for it to go in effect.

My Dad read over it and said he thought $35/mo was too high and to look at other companies.
No opinion on the price, but some questions : if this is a group policy, is it portable if you ever leave the school ?
And is the rate fixed ? Are there any elimination of benefits if you get other disability benefits (for example CA state disability, or social security disability benefits) ?

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AustenNut
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Re: New Teacher - Long Term Disability $1,600/mo - $35/mo fe

Post by AustenNut » Tue Sep 03, 2013 8:38 pm

I am a teacher who recently dropped my group LTD policy for a private one. The others have posed some good questions. Is your policy portable? Look through the paperwork and see what the definition of disability is. Also, is it own-occupation (if you can't teach you get the money) or any occupation (if you can work as a Wal-Mart greeter, you don't qualify)? And do they reduce the $1600/month if you do end up qualifying for SSDI or receive some other kind of offset? Just a few things to think about.

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Re: New Teacher - Long Term Disability $1,600/mo - $35/mo fe

Post by LadyGeek » Tue Sep 03, 2013 8:42 pm

Welcome! The wiki has some background info: Disability insurance
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cowgs
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Re: New Teacher - Long Term Disability $1,600/mo - $35/mo fe

Post by cowgs » Tue Sep 03, 2013 9:26 pm

Hello gator1
My wife and I are both retire public school teachers. For years my wife paid American Fidelity Assurance Company monthly insurance disability premiums for about $36 per month in case something happened to her. I did not have disability insurance on me as I thought it was a waste of money. Two years this month my wife had major medical problems that resulted in her being permanently medically retired. American Fidelity Assurance Company has been wonderfully helpful, honest, and timely. I am impressed with this company and recommend them.
Cheers
Craig

masteraleph
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Re: New Teacher - Long Term Disability $1,600/mo - $35/mo fe

Post by masteraleph » Tue Sep 03, 2013 9:41 pm

There are some significant issues for finding disability insurance as a teacher, and I'd be curious what the terms are for your group policy. Among them:

1) Very limited possible payouts. I work in the NY area, in a private school and was looking for something that would cover 60% of my salary- no one seemed to be offering that much for a teacher. It's reasonably easy for a public school teacher in the City to earn $80k/year by the time they've been in 10 years; in the high level suburbs, upwards of $100k is easy in that time period.

2) Lack of True Own Occupation coverage. If I'm a teacher, and want to continue being a teacher, I want that coverage. But companies didn't necessarily seem to offer that, and the ones that did were quite expensive. Teachers seem to be in a pretty poor category for disability coverage- certainly nothing like doctors, but also not really like lawyers or other professionals.

MooseandBear
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Re: New Teacher - Long Term Disability $1,600/mo - $35/mo fe

Post by MooseandBear » Wed Sep 04, 2013 4:57 am

Gator1, several posters mentioned SSDI. Would you qualify for it? Are you paying into SS as a teacher? Would/will you have enough quarters to qualify for SSDI?

BruDude
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Re: New Teacher - Long Term Disability $1,600/mo - $35/mo fe

Post by BruDude » Wed Sep 04, 2013 10:50 am

Post the details of the policy and we can help you analyze it.

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XtremeSki2001
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Re: New Teacher - Long Term Disability $1,600/mo - $35/mo fe

Post by XtremeSki2001 » Wed Sep 04, 2013 5:57 pm

madbrain wrote:
livesoft wrote:I would say that for most folks LTD is covered by SSDI which you already pay for. Short-term disability is much more likely. I would not buy such a LTD policy myself.
The SSDI definition of disability can be very hard to meet and it can take a very long time to get a determination. An LTD policy may still be beneficial if it is less restrictive and processed faster.

http://articles.washingtonpost.com/2013 ... ity-income
Also, I think the max monthly SSDI payout is ~$2500 which may not be enough depending on where you are in your career and salary.
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donall
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Re: New Teacher - Long Term Disability $1,600/mo - $35/mo fe

Post by donall » Wed Sep 04, 2013 8:50 pm

Are you in a pension system? Often the pension system has some type of short and long term disability coverage.

gator1
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Re: New Teacher - Long Term Disability $1,600/mo - $35/mo fe

Post by gator1 » Thu Sep 12, 2013 1:49 pm

Sorry it took me a little bit to get back.

dhodson wrote:Why did you have to sign that day?

I assume this is a group policy. Group polices are weaker than individual but cheaper.
Not sure, that's just what they said. Yes it's group.


sschullo wrote:Who told you besides the sales person that you had to get it that day?
Just him. I think he got me with his sales pitch.


JMacDonald wrote:Does you have sick days with your school district? If you have sick days, do they accumulate?
If so, then I would build up the sick days and let that be your disability plan.
The $35 a month can be used to build up an emergency fund rather than give it to an insurance company.
I get a sick day for every 20 days of my contract. Contract is 200 days. So, 10 days a year. And they do accumulate. But, depending on how long I was out, 10 days doesn't last long.
AustenNut wrote:I am a teacher who recently dropped my group LTD policy for a private one. The others have posed some good questions. Is your policy portable? Look through the paperwork and see what the definition of disability is. Also, is it own-occupation (if you can't teach you get the money) or any occupation (if you can work as a Wal-Mart greeter, you don't qualify)? And do they reduce the $1600/month if you do end up qualifying for SSDI or receive some other kind of offset? Just a few things to think about.
I don't believe it's portable. I will have to make some phone calls. They gave us no paperwork at all which is another reason why my confidence is not high on this plan. They showed us the cost and what we would get if we needed it, that's it. This is partly my fault, and partly the schools. They came in the middle of class, and only gave us 15 minutes to decide. So I had to make my choice quick. It was very un-organized but if you ever work in a school you will know this is common.

MooseandBear wrote:Gator1, several posters mentioned SSDI. Would you qualify for it? Are you paying into SS as a teacher? Would/will you have enough quarters to qualify for SSDI?
See, this is the tricky thing. They told us because of our pension we don't pay into SS. BUT, on my paycheck, we pay into FICA and Medicare. From what I understand FICA is paying into SS when you don't have enough taxes taken out to cover the minimum for SS. For instance my first paycheck was a partial paycheck so it was only $1,200 but $90 went to FICA, $75 went to my retirement, an $25 to Medicare. Maybe someone can make this more clear?

This is my first job pretty much so I doubt I would qualify since I've went to school the last 18 years and never had a job.

donall wrote:Are you in a pension system? Often the pension system has some type of short and long term disability coverage.
Pension yes but they offer no disability.

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