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Collecting Benefits without being Totally Disabled



Many people think that in order to collect on a Disability Insurance policy they need to be totally and catastrophically disabled. Did you know there are many benefits and ways a policy can pay out while you can still work in your current occupation!


In our experience, once an individual understands the many benefits and ways a policy can pay benefits, the more palatable it becomes to pay the premium for this type of coverage.


Insurance has some basic principles. It offers a way to transfer risk from one to another. The pricing is determined by the actuarial statistics that a group will use this type of coverage. The more use for the coverage the higher the premium.


We've gone ahead and listed some of the provisions listed below that carriers offer that allow an individual to collect a benefit without being totally disabled.


Supplemental Health Benefit: This provides a lump-sum payment equal to six times the monthly benefit if the insured has a coronary artery by-pass graft, cancer or a stroke. Think to yourself a moment. How many friends and family members to do you know that have suffered one of these conditions?


Nondisabling Injury Benefit: If the insured suffers an injury requiring medical treatment prescribed by a physician or the repair to natural teeth prescribed by a dentist, the company will pay the expense of such treatment up to a maximum benefit.


Residual and Recovery Benefit / Partial Disability: This enables the claimant to receive benefits if they only have a partial disability. Maybe you can still work in your current occupation, but you have a reduction of earnings due to a disabling condition. The carrier will allow the insured to collect a portion of the benefits while they are working on getting back to 100%. As an example, you may wear a couple different hats within you organization, but because of an illness, you may have to pass on some of those duties to another individual in your organization while you focus on getting back to where you were prior. During this transition, you opt to take lesser pay while you focus on therapy. In the meantime, your paycheck doesn't skip a beat because you are able to make up the difference by receiving benefits from you policy!


Family Care Benefit: If you have to reduce your work hours, and therefore have an income reduction, you can receive poliy benefits to take care of a family member who has a serious health condition caused by an injury or illness. You heard that correctly! You can collect benefits if you have to take care of family member who is disabled!


Knowing that these policy provisions are available is often a good reason many individuals see that Disability Insurance isn't just for the totally and catastrophically disabled!

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