How to get long-term disability insurance

Disability Insurance in Houston

Long-term disability (LTD) insurance is the type of income protection that most people will need if they can’t work. It’s the most cost-effective form of disability insurance because it’s easy to qualify for, lasts the longest, and is the most comprehensive compared to other types. You can learn more about why long-term disability is worth it, but if you’re wondering how to apply for LTD insurance, you can do so in seven easy steps. The whole process typically takes around four to six weeks.

1. Know how much coverage you need

Where do you get started applying for disability insurance? By knowing how much coverage you actually need. There are a couple of ways to look at it:

• The benefit amount. This is how much your policy will pay out every month. Most people should aim for 60% of their after-tax earnings. Since long-term disability benefits usually aren’t taxed, this should keep you close to your usual income level.
• The benefit period. This is how long your benefits will last. The average disability lasts around three years, so a minimum five-year benefit period is recommended, but you’ll get the most protection with a benefit period that lasts until retirement.
• The elimination period. Also called the waiting period, this is how long it’ll be after filing a claim before you’ll receive benefits. An elimination period of 90 days is recommended. The longer the elimination period, the cheaper the policy.
• The policy cost. An insurance policy doesn't help much if you can’t afford to pay the premiums. The factors above, and others we’ll discuss later on, affect the price, and you should know how much you’re able to pay for a policy before shopping. Most policies will cost between 1-3% of your annual income.

Also keep in mind how much coverage you already have from, for instance, a group workplace policy.

2. Know what features to look for

There are a lot of ways to customize a long-term disability insurance policy. Some features come standard at no additional cost, while some riders allow you to tweak a policy to fit your needs by paying extra each month.

Common standard features include:

• Guaranteed renewable
• Waiver of premium
• Automatic increase benefit

Popular riders include:

• Own-occupation
• Non-cancelable
• Residual or partial disability benefit
• Future purchase option

There are a number of other riders out there that may not be worth it except for in specific scenarios, whether because they address niche needs or because they’re prohibitively expensive. Riders like a Social Security offset (complements Social Security disability insurance) and a cost-of-living adjustment (increases monthly benefit to keep up with cost of living) can be useful for some people but avoided by most.

3. Compare free quotes

Don’t choose the first policy you come across. It doesn’t cost anything to get quotes for disability policies from different insurance companies. Get a couple of quotes and compare them to make sure you’re getting the right policy at an affordable price before making a decision.

You can get long-term disability insurance quotes here, and talk to a licensed expert to answer any questions you have about your disability insurance needs.

4. Application

After you’ve decided on a disability policy, you can submit an application. A disability insurance application is between one and five pages and asks basic personal, financial, and health information.

5. Phone interview with the insurance company

Once you’ve submitted an application, you’ll have a short phone call with the insurance carrier. Also called a confidential interview, the phone interview will go more in depth on medical questions and determine if, for instance, you have a pre-existing condition that will be excluded from coverage.

6. Underwriting

If you’re familiar with life insurance underwriting, the process is similar for disability insurance. There are three main steps in the disability underwriting process:

• A medical exam, where your health and medical information will be verified. It’s essentially the same as a standard physical. The insurance company will schedule a time to take the exam and can send a technician to your home or office for your convenience.
  Income verification through pay stubs or the previous year’s tax returns to make sure the amount of protection you’re applying for is appropriate.
• A request for an attending physician’s statement, or APS, which is your health history from your doctor’s point of view.
• Some insurance companies offer simplified underwriting which waives the medical exam and income verification steps, speeding up the process considerably.

7. Sign your issued policy

The disability company will issue you a policy, and all you have to do is sign a copy, send it back, and make your first premium payment for it to be in force.

Be sure to read the policy before signing it. It will usually be issued as-applied — meaning it’s what you expected when you applied — but there could have been some last-minute changes based on the results of the phone interview or underwriting process that raised or lowered the price.

Source: policygenius

Disability Insurance in Houston.

Cosecha Insurance, Drive your Life, Life Insurance in Houston, Life Insurance Coverages in Houston, Life Insurance Discounts in Houston, Life Insurance Rates in Houston, Life Insurance Policy in Houston, Car Insurance in Houston, Car Insurance Coverages in Houston, Car Insurance Discounts in Houston, Car Insurance Rates in Houston, Car Insurance Policy in Houston, Auto Insurance in Houston, Auto Insurance Coverages in Houston. Auto Insurance Discounts in Houston. Auto Insurance Rates in Houston, Auto Insurance Policy in Houston, Home Insurance in Houston, Home Insurance Coverages in Houston, Home Insurance Discounts in Houston, Home Insurance Rates in Houston, Home Insurance Policy in Houston, Motorcycle Insurance in Houston, Homeowners Insurance in Houston, Retirement Savings in Houston, Social Security in Houston, Unexpected Loss in Houston, Disability Insurance in Houston, Insurance Requirements in Houston, Insurance Companies in Houston, Personal Auto Insurance in Houston, Business Insurance in Houston, Commercial Insurance in Houston.