Disability Insurance:
You’ve Got Questions? We’ve Got Answers!
By: Diana L. Yuhas, LUTCF
Field Representative, Luttner Financial Group
Ask yourself this one important question: Am I better prepared for death
than disability? For most people, the chances of becoming disabled for
at least
90 days prior to age 65 are two or three times greater than the chance
of dying.
That’s why it is important that you own one of the best disability
income insurance policies available.
If you become sick or injured and can’t work, disability insurance
can help provide an income. If you already have a policy, when was the last
time
it was reviewed? Would it provide adequate protection today?
Q. What are the advantages of purchasing disability insurance through the
PSPA plan?
A. Through a special arrangement with The Standard Insurance Company, a leader
in disability income insurance for over 40 years, our members are guaranteed
a permanent 15% association discount with gender distinct rates. In addition,
if you qualify, there is a 25% non-tobacco use discount. Also, you own the
policy and have the right to continue it, even if you move or change careers.
Q. What are the plan benefits?
A. The plan provides a monthly benefit of up to $10,000 and offers a wide range
of options and features including:
•
Non-cancelable and Guaranteed Renewable unisex coverage to age 66/67, conditionally
renewable for life as long as you are working full-time.
• Own Occupation Coverage. “Your occupation” means the regular
occupation in which you are engaged at the time you become disabled. This benefit
is available
by rider to the policy.
• Total Disability/Totally Disabled. Because of Your Injury or Sickness:
1. You are unable to perform the substantial and material duties of Your Regular
Occupation; and
2. You are not engaged in any other gainful occupation; and
3. You are under the regular care of a Physician appropriate for Your Injury
or Sickness. This Physician’s care requirement will be waived when we
receive written proof, satisfactory to Us, that further care would be of no
benefit to You.
• An optional Residual Disability Rider with no time or duties requirement, a
guaranteed 50% minimum loss of income payment during the first six months in
which residual benefits are payable, and payment under the rider until your
loss of income is less than 20% of prior income.
• An optional Future Increase Rider which provides the option to purchase additional
future disability benefits with no proof of good health, and with only financial
underwriting required.
• An optional Indexed Cost of Living Indemnity Benefit Rider which, at the end
of 12 months in a continuous claim before age 66/67, benefits will be adjusted
at a compound rate to reflect annual changes in the consumer price index. Each
adjustment cannot be more than we would have paid if the CPI-W had increased
each year to a maximum of 6%. Before you are age 66/67, there is no total limit
on the amount of adjusted indemnity you can receive and the benefit amount
will not decrease, even if the CPI-W decreases.
• An optional Social Security Insurance Substitute Rider, a benefit that is added
to the monthly indemnity of your policy each month while you are disabled.
The benefit each month is equal to the SIS monthly maximum less any monthly
benefits paid by Social Security.
• A Rehabilitation Benefit Rider provides that the insured join a vocational
rehabilitation program while receiving the Benefit For Total Disability. The
plan must be approved by The Standard and the insured continues to be totally
disabled. This benefit is available for the lesser of 36 months or the number
of months remaining in the maximum benefit period.
Q. How long can I keep my policy?
A. The policy is non-cancelable and guaranteed renewable to age 66/67 and conditionally
renewable for life, as long as you are working full-time.
Q. If I become disabled, will I have to pay the premiums?
A. The policy provides a Waiver of Premium Benefit. If you are totally disabled
for at least 90 days, or the elimination period if less, any premiums paid
during that period will be refunded and any later premiums that fall due
during that period of disability will be waived. Premiums will also be waived
for 90 days after recovery. If you select the residual rider, you many be
either totally or residually disabled to qualify for waiver of premium.
Q. What happens if I become disabled more than once?
A. Different periods of disability from the same or a different cause can count
toward the elimination period. The elimination period must be satisfied within
the accumulation period specified on the policy schedule page, although the
days on which you are disabled need not be consecutive. In addition, a new
elimination period will not be applied if you are disabled from any cause
within five years of the end of a disability which lasted more than six months
and for which Standard paid benefits.
Q. Are there any limitations?
A. Standard will not cover loss that begins in the first two years after the
date of issue from a pre-existing condition. A pre-existing condition means
a physical or mental condition which was misrepresented or not disclosed
in which you received a physician’s advice or treatment within two
years before the the date of issue for which a prudent person would usually
seek medical advice or treatment. Standard will not pay benefits during any
period of time in which you are incarcerated; or for any disability caused
by, contributed to, or which results from the suspension, revocation or surrender
of your professional or occupational license or certification. We will not
pay benefits for more than 12 months during a lifetime of a policy when you
are not a resident of the United States or Canada.
Q. To whom do I direct any questions?
A. You may call Diana L. Yuhas at Luttner Financial Group at 1-800-565-2010
or 724-832-0535.
Published in PSPA News, Spring
2004