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For more information on disability income
insurance, please email us at tate@tatemoney.com
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HOW
MUCH DOES DISABILITY INSURANCE COST?
The cost of the policy will depend on several
factors including, age, occupation, health status, smoking status and gender.
WHAT IF I AM PREGNANT?
Check the policy to see if complications of pregnancy
are covered. Pregnancy can be covered under a disability insurance policy.
CAN
I TAX DEDUCT MY DISABILITY INSURANCE PREMIUMS?
According to current IRS guidelines,
if you deduct your disability insurance
premiums, your benefit(if you become disabled) would be taxable. If you pay with after tax dollars, your disability insurance
benefit is tax-free.
WHAT IF I LEAVE THE COUNTRY?
Depending on the policy, some policies will cover foreign travel. Other policies will suspend the contract while
you are abroad. If you go on active military duty, most companies will put your policy in suspense until you are off of active
duty. Check your policy for these important provisions.
CAN I PURCHASE
COVERAGE IF I HAVE A MEDICAL CONDITION?
The type and severity of the medical problems
will be evaluated by the underwriters at the insurance company. Generally, one of three things will happen. The insurance
company can charge a higher premium for the policy, exclude the condition from the policy, or decline insurance altogether.
CAN MY EMPLOYER PAY OR REIMBURSE MY PREMIUMS TO ME?
Your employer can pay for your disability insurance coverage, however it may cause the benefit to be taxable to you
at the time of claim.
WHEN IS THE BEST TIME TO BUY A DISABILITY POLICY?
Now. Because the best time to buy a disability policy is when you are young and healthy,
and the premiums are based largely on health and age.
WHAT IS THE APPLICATION
PROCESS?
Once you have made a decision on which policy you would like to apply
for, we will either meet with you or call you to gather additional information and schedule a medical exam. The exam can be
completed at your home or office at no cost to you. Once we receive all completed forms the application is then sent to the
insurance company to go through underwriting.
WHAT
IS UNDERWRITING?
Underwriting is the process by which an insurance company examines,
accepts, or rejects insurance risks so as to charge the proper premium for the coverage. The company classifies the accepted
applicants into different risk categories to charge the proper premium.
HOW
LONG WILL UNDERWRITING TAKE TO GET COVERAGE?
The underwriting process
generally takes anywhere from 30 to 90 days, before a decision is made.
WHAT HAPPENS TO MY POLICY IF I CHANGE JOBS, MOVE TO ANOTHER STATE OR CHANGE OCCUPATIONS?
If your policy is non-cancelable and guaranteed renewable, the policy benefits typically will not change. Additionally,
individual disability insurance policies are portable, so you take them with you if you move to another state.
CAN I SEE MY OWN PHYSICIAN IF I BECOME DISABLED?
Yes.
Most companies will allow you to see your own doctor if you are disabled. The insurance companies do reserve the right to
have their own physicians evaluate you disability
WHAT ARE SOME COMMON
EXCLUSIONS?
Mental/Nervous Disorder(reduced benefit period)
Act of war
Active Military Duty
Foreign Travel
WHAT ARE THE MAJOR DIFFERENCES
BETWEEN INDIVIDUAL DISABILITY INCOME INSURANCE POLICY'S AND GROUP POLICY'S
In
general with individual disability insurance, the benefits are tax free if you pay the premium, higher monthly benefits, premium
rate guarantees to age 65, the policy is owned by you and can be taken with you to a new job or state and generally more liberal
definitions within the policy to pay you more money in more claims scenarios.
In general with group disability
insurance, benefits are taxable if your employer pays the premium, more restrictive definitions within the policy, policy
can be changed or canceled at any time by the insurance company or your employer, no premium rate guarantees, people with
poor health can get coverage, less expensive than individual coverage and no medical exam to qualify for benefits.
WHERE DO I FIND INSURANCE COMPANY RATINGS?
A.
M. Best Company
Ambest Road
Oldwick NJ 08858
Phone: (908) 439-2200
Internet: www.ambest.com
Standard & Poor's Corporation
55 Water Street
New York NY 10041
Phone: (212) 438-2000
Internet:
www.standardpoor.com
Moody's Investors Service
99 Church Street
New York NY 10007
Phone:
(212) 553-0377
Internet: www.moodys.com
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