supplementalbenefits.com

This insurance is designed to replace a portion of your income, due to a sickness or accident that incapacitates you from working at your job. There are several types of contracts that you are able to purchase thru employer sponsored arrangements. Group short-term, long-term, individual multi-life contracts and supplemental short-term disability income insurance.

Supplemental Short-term Disability Insurance

Has benefits ranging from 0/7(accident days coverage is commonly on the left side of the hyphen and sickness days on the right side), 7/7,0/14, 14/14, 0/30,30/30, 60/60, 90/90, 180/180. Benefit periods are usually 3 months, 6 months, 12, month and 24 month. Each employee may choose their own specific waiting period and benefit period based on a percentage of their income. Medical Underwriting is commonly written on a “simplified issue” basis with only a few medical questions and never a need for blood or urine specimens. The waiting periods are also an advantage, as the individual marketplace no longer offers such short waiting periods.

Policies may cover off the job only coverage or both on and off the job. Some insurance contracts pay a higher benefit for off the job benefits, but a smaller benefit on the job, as the employee will be collecting workers compensation and the company doesn’t want to encourage malingering.

Benefit minimums commonly start at $300-$500 of monthly benefit and range to a maximum of $4,000 to $6,000 of monthly benefit. Most companies only require 3-5 employees to participate.

Coverage is portable if an employee switches jobs or employers.

Coverage is worldwide with some restrictions. There is no integration of benefits with workers compensation, state disability plans, social security, or any other group or individual disability income insurance plans.

Group Short-term Disability Insurance

Most commonly provides off the job disability benefits with a benefit period ranging from 3 to 12 months and may co-ordinate with long-term disability insurance. Waiting periods are usually 7/7, 14/14, or 30/30. The same benefit is provided for all employees as opposed to supplemental plans where the employee can choose their own specifications. Depending on the company’s demographics the rates may be less expensive than the supplemental, but this product usually requires 75% of employees to participate. Benefits levels are anywhere from $100 to $1,000 per week. Guaranteed issue underwriting for groups of ten or more usually apply.

Group Long-term Disability Insurance

Provides benefits after a 60, 90, or 180 day waiting period. This product integrates with Workers Compensation, Statutory Disability, and Workers Compensation. Riders include cost of living increases, partial or residual disability benefits, catastrophic, and your occupation riders for certain select professions.  Participation of 20% of the workforce is required. Monthly benefit levels range from a minimum of $100 to $15,000. Percentage of income ranges from 50% to 70%. Wages may or may not include commissions, overtime, pension contributions, and/or amounts over a certain level of income Benefits are provided for both on and off the job. Underwriting for group of 10 or more are guaranteed issue, but pre-existing conditions may apply depending if the insurance is replacing another group or a new plan.

Individual Disability Income

Defined as either "own occupation," which is the inability to perform the duties of your own specific occupation, or "any occupation," which is the inability to perform the duties of any job for which your education and training qualifies you. Benefit levels are dependent on the income level of the insured. All individual plans require full underwriting. A physical exam, blood, urine and other tests as well as the attending physician’s statements may be required.  Pricing varies by occupation, length of coverage, waiting period, riders, amount of coverage and the definition of disability. The most common waiting periods are 60 and 90 days. Benefit periods may be 2,5 or 10 years or to age 65 for sickness or even lifetime for accident. Riders include future increase option, residual disability, cost of living, and social security benefit rider. When 3 or more policies are purchased by the same company you may receive a multi-policy discount.

Exclusions for these different disability income insurance contracts are based on the specific insurance contract, type of product, insurance company and state of issue.