5 questions to ask about long term disability insurance
Mark E. Snapp & Associates is known for long term disability insurance policies in and around Beckley, Huntington, WV, Morgantown, Parkersburg, Charleston, WV. Here are a FAQs about them.
What is long-term disability insurance, and why do I need it? 
Answer: Long-term disability insurance is a type of coverage that provides financial protection if you become disabled and are unable to work for an extended period, typically lasting longer than a few months. It ensures that you continue to receive a portion of your income to cover living expenses and maintain your standard of living during your disability. It is important because it helps you avoid financial hardship during a period when you can’t work due to an injury or illness.
How does long-term disability insurance work?
Answer: Long-term disability insurance typically pays a percentage of your pre-disability income if you become disabled and are unable to work. This percentage, known as the benefit amount, can vary but is often around 50-70% of your income. To receive benefits, you must meet the policy’s definition of disability, which usually involves proving that you can’t perform the duties of your occupation or any reasonable alternative work due to your disability. Benefits typically start after an elimination period, which is a waiting period specified in the policy.
What factors should I consider when choosing a long-term disability insurance policy?
Answer: When choosing a long-term disability insurance policy, consider the following factors:
Benefit Amount: Ensure that the benefit amount is sufficient to cover your essential living expenses.
Definition of Disability: Understand the policy’s definition of disability and how it aligns with your occupation.
Elimination Period: Determine the length of the elimination period and if it fits your financial situation.
Premiums: Evaluate the cost of premiums and how they fit into your budget.
Riders and Options: Explore additional riders or options for enhanced coverage, such as cost-of-living adjustments or residual disability benefits.
Insurance Company: Choose a reputable insurance company with a strong track record of paying claims.
Are there any exclusions or limitations in long-term disability insurance policies?
Answer: Yes, long-term disability insurance policies may have exclusions and limitations. Common exclusions include pre-existing conditions, self-inflicted injuries, disabilities resulting from illegal activities, and certain mental health conditions. Limitations can include benefit caps, coverage for only specific periods, or limitations on certain types of disabilities, such as substance abuse-related disabilities. It’s crucial to carefully review the policy’s terms and conditions to understand these limitations.
When should I consider purchasing long-term disability insurance, and how long should I keep it?
Answer: You should consider purchasing long-term disability insurance when you have a steady income and financial obligations, such as a mortgage, rent, or family to support. The ideal time to buy it is when you are young and healthy because premiums are generally lower. You should keep it as long as you have financial responsibilities and dependents who rely on your income. Reevaluate your coverage periodically to ensure it remains adequate as your circumstances change, such as when you get married, have children, or change jobs.
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