The insurance industry can be tricky. There’s a lot to know, especially when it comes to long-term disability insurance.
Insurance policies often use language that average laypeople are unfamiliar with. Here are 10 of the long-term disability insurance terms you should know:
#1 - Disability
Each insurance policy has its own definition of disability, so it’s important to thoroughly understand the definition in your specific plan. Long-term disability plans typically fall into one of two vast categories: “own occupation” and “any occupation.”
Own vs. Any Occupation
Own occupation means that you are considered disabled if you cannot carry out the specific duties of your own job. Any occupation means that you are incapable of working any job that you are reasonably qualified for in terms of your education, training, or experience.
#2 - Benefit Period
This refers to the maximum length of time in which your benefits will be paid.
#3 - Contributory Plan
A group coverage policy that allows costs to be shared between an employer and its employees.
#4 - Deductible
A contingency in your policy demanding that you pay an initial amount of the costs before you can start using your disability insurance coverage.
#5 - Effective Date
The date your insurance policy starts.
#6 - Exclusions
Certain ailments are not covered under all disability plans. For instance, many policies don’t provide benefits for disabilities that come about as a result of committing a felony or acts of self-harm.
#7 - Pre-Existing Condition
A medical ailment you have before the effective date of the policy and for which you have received medical treatment.
#8 - Rider
An add-on to your policy that is implemented (usually with an additional fee) to supplement coverage that isn’t provided in your base plan.
#9 - Individual Disability Insurance
Disability coverage that you purchase individually from an insurance broker. You are responsible for all expenses.
#10 - Independent Medical Examination (IME)
A medical examination conducted by a physician of the insurance company’s choosing to determine whether you are eligible for benefits.
If you need help with your long-term disability insurance claim, we’re here to help.
Call Dabdoub Law Firm today at (800) 969-0488 to speak with an experienced attorney about your case.