Start at work. See what disability coverage your employer provides.
Cover the shortfall. Consider buying supplemental coverage if your work policy falls way short of your income needs. Remember, the checks received from disability policies purchased on your own are not subject to income tax.
Choose with care. When shopping for a policy to supplement your employer’s policy, look carefully at its definition of total disability. The most comprehensive, “own occupation” policies have language that reads something like this: “You are disabled when, as the result of an illness or injury (accident), you are unable to do any (one) of the material duties of your own occupation.”
Consider a compromise. Another option is an “any occupation” policy, which defines disability basically as follows: “You are disabled when, as the result of an illness or injury (accident), you are unable to do all of the material duties of any occupation (based on your prior training or experience)” This kind of coverage tends to be less expensive than an “own occupation” policy but is harder to collect benefits from.
Ponder price increases. There are two variations of disability policies—non-cancelable and guaranteed renewable. “Non-can” policy premiums can’t increase, while guaranteed-policy premiums can increase but only for an entire class of policy-holders. Guaranteed policies tend to be cheaper than “non-cans.”
Get disability claims paid faster
Claim delays and denials are common among disability insurers. How to speed up the process:
DELAYED CLAIMS.
Keep careful track of your claims. When you speak with a rep on the phone, take notes and indicate the date and time. When records are needed from doctors, do what you can to make sure the insurer gets the information promptly.
DENIED CLAIMS.
Some of the most common claim disputes occur when an insurer says you can work but your doctor says you cannot. If this happens, ask your insurer to allow an independent medical exam. As a last resort, call your state insurance department for help persuading the insurer to pay.
