Private Long Term Disability Insurance

Private Long Term Disability Insurance
Long term disability insurance can be vitally important to​ those people who want to​ protect themselves against the​ loss of​ future earnings .​
Disability insurance,​ in​ general,​ is​ used when a​ person is​ no longer able to​ work and to​ earn a​ living .​
The benefits received from disability insurance can help pay mortgage bills,​ living expenses,​ medical expenses,​ etc .​
In many ways,​ it​ can be the​ difference between maintaining a​ lifestyle and facing a​ lifetime of​ uncertainty.
There are two types of​ long term disability insurance .​
There are those policies that are considered group policies .​
These are usually bought through the​ workplace or​ through participation in​ certain organizations .​
The other type is​ private .​
Private long term disability insurance is​ purchased by the​ individual and is​ usually more expensive than policies purchased through group policies.
There are also those group policies that allow participants to​ add more coverage to​ an​ individual policy as​ long as​ the​ person is​ willing to​ make the​ added payment himself .​
For those who have group coverage this can be a​ good way to​ get added protection at​ discounted prices .​
In the​ area of​ private long term disability insurance the​ first thing to​ understand is​ that this type of​ insurance can be expensive .​
It is​ almost certainly going to​ be more expensive than life insurance .​
However,​ this type of​ protection is​ actually more valuable than life insurance in​ many ways .​
Its main value is​ that it​ allows you​ to​ maintain a​ close semblance of​ your lifestyle should you​ be forced out of​ work due to​ illness or​ injury.
There are some advantages to​ having private long term disability insurance as​ well .​
The benefits that you​ receive if​ you​ become disabled will be tax-free,​ as​ long as​ you​ paid the​ insurance premiums with after-tax money .​
Another benefit to​ having private coverage is​ that the​ coverage is​ not bound to​ your job .​
In other words,​ if​ you​ change jobs your coverage does not end as​ would be the​ case with most group coverage policies .​
If your occupation allows for exceptionally high earnings you​ may need to​ purchase a​ special type of​ private long term disability insurance that will lock in​ that level of​ earning should you​ become disabled .​
Most group policies use what is​ known as​ the​ any-occupation scheme which allows for the​ less expensive premiums,​ but also provides a​ lower amount of​ benefits .​
High earners need to​ take this into consideration when thinking of​ long term disability insurance.
There are some important things to​ look for in​ private disability insurance: you​ want a​ policy that is​ non-cancellable .​
This guarantees that premiums will not be changed as​ long as​ you​ pay them on​ time and in​ full .​
You also want to​ look for a​ policy that is​ to​ age 65 .​
You want to​ avoid policies that are termed as​ accident only .​
These polices will not pay if​ you​ become disabled through illness rather than injury,​ and some of​ the​ accident conditions can be hard to​ meet .​
There are a​ number of​ riders that can be bought with most private long term disability insurance and you​ should go through those carefully as​ some of​ them can be very important .​
Most riders will cost a​ bit more to​ implement into the​ policy but they can be worthwhile should you​ ever need to​ use them.

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