Comparing benefits in Disability plans
Are all Disability Insurance plans the same? Not at all. Comparing plans can be a task, but it’s necessary in discerning the right plan to help benefit each clients’ specific needs. Here at Producers XL we have the following carriers:
- Assurity
- Mass Mutual
- Mutual of Omaha
- Peterson International Underwriters
- Principal
- Standard
Short-Term Disability vs Long-Term Disability Insurance
- Short-Term disability insurance is most often available through employers. These policies have short elimination periods with short benefit periods, meaning clients won’t have to wait long to start collecting disability benefits, but won’t be able to collect benefits for long periods of time (usually up to 1 year). Assurity does offer a short-term disability plan offering an elimination period as low as 0 days for accident and 7 days for illnesses with benefit periods up to 2 years with benefits being paid on a weekly basis.
- Long-term disability insurance can also be offered through employer group plans. With these policies the elimination and benefit period tend to be longer. Group plan coverage is rarely customizable to fit everyone’s needs and coverage is lost when switching employers.
- Individual Long-term disability insurance coverage is purchased individually. It’s not tied to an employer plan and is fully portable, meaning your client does not lose coverage when switching employers. Coverage is fully customizable to meet the needs of each client, and with the carriers offered through Producers XL, it allows you the ability to shop for the best terms and price.
A Variety of Extra Disability Benefits
There are a variety of extra benefits available known as riders, which provide additional benefits. Some carriers include riders in the base plan of the policy at no additional cost whereas other riders add additional cost to the plan. Different carriers provide different selections of riders to choose. This is where comparing individual policies requires a close review to ensure customize policies to meet the individual needs of each client.
- Benefits can provide return of premium – Mutual of Omaha offers optional riders for return of premium or a cash value benefit. Assurity also offers a return of premium rider.
- Benefits to provide for your family – Standard offers a family care benefit rider which offers coverage that provides the ability to take time away from work to care for a child, parent or spouse with a serious health condition. Assurity offers this rider with their short-term disability product.
- Benefits for student loan coverage – Mass Mutual and Standard both offer coverage to pay student loan debt while the insured is experiencing a totally disabling injury or sickness.
- Benefits for a total disability – Principal offers a capital sum benefit that may be payable if the insured experiences a total loss of use of a hand, foot or sight in an eye without any chance of recovery. Assurity offers a home modification benefit.
These are just a few examples of coverage that can be customized for each client. Riders may not be available with every policy and/or may have limitations and exclusions.
The best way to see what options are available is to start comparing quotes. Reach out to me to assist in designing a product that fills the needs of each individual client in protecting their income.
Merry Christmas and Happy New Year!
Kristi Munoz
