Individual Long-Term Disability Insurance
- Pays whenever you cannot work as the result of an illness or injury.
- Requires you to prove evidence of good health to qualify for a policy.
- A major advantage is that the policy can be kept to age 65 regardless of job changes.
- It is usually guaranteed renewable to age 65 and often times the pricing is locked in to age 65.
- Benefits are tax-free because the premiums were paid for with after-tax dollars.
- There usually is no offset for workers compensation benefits, which means you can collect both at the same time.
- There also is no offset for group benefits you receive from an employer.
- You do have the choice when purchasing a policy initially to decide whether or not to include an offset for Social Security benefits.
A good individual long-term disability policy should include:
- Benefits for partial ("residual") benefits to age 65.
- A future purchase option to regularly increase your coverage regardless of deteriorating health later.
- A cost-of-living adjustment rider that will increase your benefits while disabled by around 4% to 5% a year.
- And offer a lot more flexibility in terms of choices of benefits and features.
*Once you have qualified for an individual policy, as a rule never drop it!
- Even if you get some additional coverage from an employer.
- If you cannot get either individual or group disability coverage on yourself with Parkinson's
- Or if you are currently already disabled from Parkinson's and have a spouse.
- It is recommended to load up on disability coverage on your spouse.
- If they get disabled, not only have they lost their income but you may very well have also lost their physical ability to help you in coping with your disease, requiring you to spend additional dollars for a caregiver for yourself and possibly your spouse too.
Content for this section provided by Jack Hungelmann, who has had PD since 1996.