For Health Care Providers - How to Buy Long-Term Disability Insurance

How to Buy Long-Term Disability InsuranceIn today's podcast, listen in to a recording of a presentation long-term disability attorney Ben Glass recently gave to a national gathering of nurse anesthetists. During the session, Ben shared invaluable insights on how to navigate the complex world of long-term disability insurance. Here are the key takeaways from his talk:Understanding the Importance of Individual PoliciesBen emphasized that individual long-term disability insurance policies generally provide superior benefits compared to group policies offered by employers or associations. One of the primary advantages of an individual policy is its portability; your coverage goes with you if you switch jobs or move to a different practice. Additionally, benefits from individual policies are typically non-taxable, provided you pay the premiums yourself. This can offer a significant financial advantage if you ever need to make a claim.Evaluating Group PoliciesGroup policies are often included as part of an employment benefits package. These policies are generally cheaper and do not require health underwriting, making them accessible to all employees regardless of their health status at the time of enrollment. However, group policies come with several limitations. They may include pre-existing condition exclusions, meaning any medical conditions you had before the policy started may not be covered. Additionally, these policies often offer shorter own-occupation coverage periods—usually only for the first two years. After that, benefits are only paid if you cannot perform any occupation, not just your own specialty. Furthermore, benefits from group policies are taxable if the employer pays the premiums.The Pitfalls of Association PoliciesBen warned that association policies, like those offered by the American Medical Association, tend to provide the least favorable terms. These policies are often inexpensive and do not require medical underwriting, but they offer minimal benefits. Given the choice, it's better to prioritize individual and group policies over association policies unless health issues prevent you from obtaining better coverage.Navigating Elimination PeriodsAn elimination period in a disability policy is similar to a deductible in health insurance. It represents the amount of time you must wait before you start receiving benefits after a disability occurs. The length of the elimination period can significantly affect your premiums. Longer elimination periods result in lower premiums but may not be practical if you don't have substantial savings to cover the gap. When choosing an elimination period, consider how long you can sustain yourself financially without an income.Dealing with Pre-existing ConditionsBen stressed the importance of being completely honest about your medical history when applying for an individual disability insurance policy. Insurers will uncover past health issues, and failing to disclose them can lead to denied claims. Depending on your health history, insurers might exclude certain conditions from coverage or impose waiting periods before coverage kicks in for those conditions. A good broker can help you finThese public domain recordings are brought to you by Ben Glass Law, a national long term disability and life insurance firm headquartered in Fairfax, VA.By making these recordings into a "podcast," we've made the listening easier for claimants, attorneys and claims adjusters alike. If long term disability or life insurance benefits have been denied, we'd love to review your denial letter and give you a strategy for moving forward. This is a free service and you can go here to begin submitting your denial letter.