How to Get Long-Term Disability Insurance (Long Term Disability Insurance 2/2)

Meet John. John has been working at CorporateCo's Sunny LA branch for the past seven years. John has just finished our video, Long-Term Disability Insurance 101, and has been convinced of the value of the plan. He's ready to take the plunge, but doesn't know where to start. What should he do? Well, his first step is simple. Shop around for To do this, John can either go online the best long-term disability insurance plan. and get quotes from insurers, contact a local insurance agent, or use our preferred website to easily compare insurance quotes from the best providers. Then, once John selects a plan, he'll have to submit an application that provides basic information to the insurer, such as employment status, proof of income, and a release to review his health records. After that's done, an insurance representative will then contact him to schedule two more things, a phone interview and a paramedical exam. During the phone interview, the representative will typically ask John questions about his hobbies, lifestyle, and health history. During the paramedical exam, which generally takes place either at home or at work, a trained medical professional will then take John's basic vital signs, as well as a blood and urine sample. Then, once those two tasks are complete, assuming everything else is in order, an insurance underwriter will then look at John's application and approve him. Finally, now that John understands how long-term disability insurance works, as long as he follows these seven rules, he should be set for the future. Rule one, determine whether or not you actually need to purchase long-term disability insurance, as your employer may have already provided it for you. For more details on this, be sure to contact your HR department. Rule two, to ensure adequate coverage, always target a policy worth about 60% of your current Pre-tax income. Rule 3. Once you find a policy with the right amount of coverage, make sure it's a non-cancellable, own-occupation policy with residual benefits. That was a lot of strange words, so let's break it down one by one. Non-cancellable means your terms and premiums are fixed permanently, at purchase, allowing you to lock in a low lifetime rate. Own-occupation ensures you'll still get a payout, even if your disability still allows you to work, just not in your current occupation. And finally, should your disability only prevent you from working full-time, residual benefits will ensure you still get any money for any part-time work. Rule 4, although it's more expensive, try to find a policy with a benefit period lasting until age 67. This will ensure you're covered all the way to retirement, though if you can't afford it, make sure your benefit period is at least 5 years long. Rule 5. Make sure your policy has an elimination period of at least 90 days, which is the time between your disability and the start of your benefits. The longer you can make this period, the cheaper your policy will be. Rule 6. Always read the fine print and only get long-term disability insurance from reputable providers with excellent credit ratings. If that sounds confusing to you, don't worry. Our recommended website does this screening process for you. Rule 7, the final rule. If you suffer a long-term disability, don't delay. Call your insurer and file a claim as soon as possible. Congratulations, you have finished our long-term disability insurance basics curriculum. If you want to see our free recommendations for great long-term disability insurance plans or just more educational material, be sure to check out our website.