Disability Insurance: Own Occupation vs Any Occupation

Disability income contracts are intended to protect you from income loss when you are sick or injured. The most important factor of the contract is how disability is defined. Long-term disability is intended to protect those who are totally disabled from performing their duties. Many contracts not only provide benefits while the claimant is disabled from working, but also require an earnings loss from the disability. Many assume that long-term disability is too expensive, however, employer sponsored long-term disability is generally very inexpensive compared to a personal long-term disability contract.

Own Occupation

This term refers to when a claimant, whether they are in a group or individual disability contract, is disabled because they are unable to perform the material and substantial duties of their occupation. This definition is still met when the claimant is totally disabled and not working at all. Typically, group policies have a limited term policy, a two-year Own Occupation period for selected employees. After that two-year period is up, the contract continues to pay but the definition changes to Any Occupation. Some limited term policies provide claimants with a 5-year benefit. However, some contracts will continue to use the definition, Own Occupation, until the claimant turns 65 years old or to their Social Security Normal Retirement Age. It is unusual to see an individual disability policy with anything less than Own Occupation coverage.

Any Occupation

Any Occupation, also known as Any Gainful Occupation, refers to when a claimant is unable to perform the material and substantial duties of any gainful occupation. Any Gainful Occupation refers to an occupation where a person’s performance is based on education, training, and experience. The Gainful Occupation may be required to provide the claimant with a defined income level in order to no longer be classified as disabled.

For more information about long term disability insurance in California please contact Bernardini & Donovan Insurance, located in Redlands.

Find the Long Term Disability Insurance You Need With These Simple Tips

When disaster strikes in the form of an illness or injury, it can often render you disabled and unable to work. This may last a few weeks, a few months, a few years or the rest of your life. Long-term disability insurance is a special type of insurance coverage that can ensure you stay financially secure during such a time. However, purchasing long term disability insurance should be considered as an investment. Therefore, you need to be careful when buying.

Here are a few tips to make the search and purchase process smooth:

Don’t Rely Solely on Government Assistance

Social Security benefits are often available to those who become disabled due to an injury or illness. However, it can often take months to be approved, if you are approved at all. Therefore, long-term disability insurance is a necessary back-up plan to replace the income that you had from your job.

See If Employer Policies Are Available

Depending on the industry and the employer, you may have a disability insurance policy with your place of employment. Many employers offer both short- and long-term disability insurance to employees. Even so, you may still want your own policy to help bridge the gap between the money you receive from your employer and the money that you need to live.

It’s always better to be safe than sorry because you never know when an unexpected illness or injury can strike. You want to make sure you and your family are taken care of during a time like this and one of the best ways to do so is by purchasing long-term disability insurance.

Contact us for a California long-term disability insurance quote or learn more about securing your financial future with what we have to offer here at Bernardini & Donovan Insurance in Redlands.

Is Disability Insurance Something I Really Need?

You likely have insurance coverage for your house, your automobile and your personal belongings. However, have you ever thought about insuring yourself? We’re not talking about life insurance. We’re talking about disability insurance, which would provide assistance if you were to lose your ability to work and bring in a paycheck.

Did you know that 25% of 20-year-old individuals today will become disabled in one way or another before they are 67 years of age? Further, the average disability payment for Americans as of March 2014 was just over $1,130 a month. That’s hardly enough to pay the bills. More often than not, just missing a day of work can put a family in a real bind financially, so what would happen if you couldn’t work for several months? This is why it might make sense to consider disability insurance.

Disability insurance comes in many shapes and forms, as explained below.

Group Disability Plans

You can purchase a group disability plan, which would be through your employer. This is probably the most common and affordable type of disability coverage, but it may not be enough or there may be fine print that would keep you from receiving all benefits for a certain period of time. So, be careful.

Individual Disability Plans

This type of coverage will be quoted based on your individual situation. Therefore, the price may be higher but you will likely have access to more benefits and options that will be worth it.

Supplemental Disability Plans

This is just a supplemental coverage that will be in addition to your employer policy or your government assistance. If you don’t need much more than what you can expect to get from Social Security benefits, then this may be a feasible choice.

When you think about an illness or injury rendering you unable to earn a living and the amount of money you could expect to receive from the government, you can begin to see the importance of disability insurance.

To learn more about what disability insurance options are available to you and your unique situation, contact us at Bernardini & Donovan Insurance in Redlands, CA.

Understanding Your Disability Insurance Options

The majority of people in the workforce never even consider the fact that they may become temporarily or permanently disabled. As a matter of fact, it should be something that people give some thought to. People think about life insurance and how their family will survive financially if they were to die unexpectedly. People are diagnosed with illnesses and are injured every day; if you read a newspaper or turn on the TV you already know this. So, maybe it is time to think about what would happen to you and your family, if you were injured or became ill.

According to the Council for Disability Awareness (CDA), the majority of the workforce has to depend on using their vacation and sick time they have accrued. Eventually, and in some cases quickly, you will be out of paid time off. What are you going to do when the money runs out?

That’s were disability insurance comes in, let’s take a closer look at the different types of disability insurance.

Workers Compensation

If you are injured on the job, you will qualify for workers compensation. Which will pay you 2/3 of your normal salary every two weeks; it will also cover all of your medical care. Workers compensation is required by law – every employer must have a workers comp policy on every employee. However, 2/3 of your paycheck is not the same as a full paycheck and will most likely cause financial hardship. Therefore, investing in private disability insurance is a good idea.

Private Disability Programs

Often times, an employer will offer short and long term disability insurance for a premium. If they do not, then you must find your own.

Short Term Disability Insurance

Short term disability policies are intended to provide coverage for a limited time period. The waiting period for payment is quick, usually within two weeks. You have to decide the length of time you may need short term disability insurance payments. You can choose between a month and up to a year. For example one month, two months etc… The longer the timeframe of the policy the higher the premiums will be. However, you should not let the amount of the premium discourage you from purchasing a policy because if you ever need it, it will have been worth every dime!

Long Term Disability Insurance

Long term disability policies are intended to provide coverage for a longer period of time (anywhere from one year to the rest of your life.) The waiting period is much longer; the average timeframe is 3 months although it could be up to 2 years. That is why having both a short term disability policy (up to one year) and a long term disability policy is a good idea. In the event it takes a long time for you to start receiving your payments from the long term disability you will have been receiving payments, so a short interruption in payments will not be as hard on your bank account. Long term disability policies pay benefits until the maximum dollar benefit has been reached or the specific timeframe that was chosen is reached.

Public Disability Insurance Programs

In the United States there are two types of public disability programs, Social Security Disability and Veteran’s Disability. Both of these public disability programs are backed by the government. In addition, the Social Security Disability program can be difficult to get approval for and in most cases the person will need an attorney.

Social Security Disability Benefits (SSDI)

According to the Social Security Administration, almost 11 million people receive a SSDI payment every month. This government funded program offers both temporary and permanent benefits.

Veterans Disability Benefits

Disability benefits offered to veterans are easier to get approved for than Social Security benefits. The requirements for a veteran to receive benefits are to have been injured or diagnosed with an illness caused during their active military service. To inquiry about Veterans Disability benefits you can file a claim through your local Veterans Administration.

Understanding disability benefits can be a challenge, for more information on the types of disability insurance in California please contact Bernardini & Donovan Insurance, located in Redlands.

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