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Disability Insurance Types
Learn more about disability insurance types below. More information about disability insurance policy types also can be found on the Disability Insurance main product page.
WOLIGO’S DISABILITY INSURANCE – COMMON QUESTIONS ABOUT COVERAGE
WHAT DOESN’T DISABILITY INSURANCE COVER?
Disability insurance is designed to replace a portion of your income, not the entire thing. It’s also common for policies to contain exclusions, such as pre-existing conditions. Woligo’s disability insurance is designed to protect you if you have a qualifying injury or illness but does not cover pregnancy or planned medical treatments known prior to obtaining coverage, like surgery.
DOES DISABILITY INSURANCE COVER PRE-EXISTING CONDITIONS?
If you have a pre-existing condition, some insurance carriers might deny offering you coverage. And if they do offer you coverage, they might include an exemption clause for the condition you already have or charge you a high premium to make up for your increased risk. This is another example of why you are encouraged to get disability insurance while you are young and healthy to take advantage of affordable disability insurance. Some pre-existing conditions that would not qualify for Woligo’s disability coverage include HIV or AIDS related illnesses and illicit drug use, cancer, heart attacks and strokes that were diagnosed or treated within the last five years.
WHY COULD SOMEONE BE DENIED DISABILITY INSURANCE COVERAGE?
There are many reasons why a person could be denied disability insurance, and they vary across age ranges and healthiness. For example, cancer or mental illness can affect the young as well as the elderly.
Disability insurance is underwritten based on your perceived risk. So, if you are older and more likely to become disabled, chances are your insurance will cost a lot more if you are even approved at all. Hence, you are recommended to buy affordable disability insurance while you are still young and healthy!
WHEN DOES MY COVERAGE START?
There are two crucial dates when your new policy begins. Coverage from your individual disability insurance policy starts when you are approved and make your first payment. However, you cannot file a claim for a qualifying disability until after your waiting period is over.
WHEN AM I CONSIDERED DISABLED?
That depends on how your policy defines disability.
WHAT DOES TOTALLY DISABILITY MEAN?
Total disability is the disability requirements necessary to receive benefits under a Disability insurance policy. One example of a definition of Totally Disabled would require a sickness or injury which:
- starts while this policy is in force;
- requires a physician’s care unless the physician certifies maximum recovery;
- for the first two years after the elimination period, keeps you from doing all the substantial and material duties of your own occupation; and
- after benefits have been paid for two years, keeps you from doing all the substantial and material duties of any gainful occupation – an occupation, which fits you by education, training or experience and replaces at least 60 percent of your prior monthly income
DO I HAVE TO PAY TAXES ON BENEFITS?
It depends on who pays for your coverage. If your employer pays for your coverage, then you must pay taxes on the benefits. If you have individual disability insurance and pay for your coverage yourself, you can collect your benefits tax-free.
IF I BECOME DISABLED, DO I NEED TO KEEP PAYING PREMIUMS?
If you become totally disabled, you will not have to pay your premium payment for the same length as the elimination period in your policy, or 90 days, whichever is shorter.
HOW MUCH DISABILITY INSURANCE COVERAGE DO I NEED?
The amount of disability insurance you need largely depends on the amount of income you earn. Disability insurance is designed to cover up to about 60% of your paycheck or income so the more expenses you have, the more disability coverage you need to adequately supplement your lifestyle.
HOW CAN I FIGURE OUT HOW MUCH COVERAGE I NEED?
You can start by looking at your monthly bills such as mortgage/rent, car payment, student loans, credit card payments, child care, cell phone, utilities, cable/internet, groceries, and any other expenses you might have. It is important to choose a monthly benefit amount that covers a bulk of your expenses.
HOW MUCH WILL DISABILITY INSURANCE PAY?
Woligo’s disability policy determines payments depending on the benefit period and amount of coverage you qualify for based on your occupation, the state where you live, income, tobacco usage, and other factors. Get a commitment free quote here.
WHY DO I NEED INDIVIDUAL COVERAGE IF I’M COVERED THROUGH WORK?
Employer sponsored disability insurance is tied to your employment so if you leave your job for any reason, your coverage disappears. Also, our individual disability policy through usually offers better benefits because it is specifically targeted to you, the policy holder, not an entire group of employees.
IF I CHANGE JOBS WHAT HAPPENS TO MY DISABILITY INSURANCE?
If have employer-sponsored disability insurance, then your coverage disappears when you leave your job. But, if you have individual disability insurance, then nothing changes because your coverage doesn’t depend on who your employer is.
WHAT IS CONSIDERED TO BE A PRE-EXISTING CONDITION?
A pre-existing condition is a sickness or physical condition for which, during the two years before the issue date, the insured had symptoms which would cause an ordinary prudent person to seek diagnoses, care or treatment; or received medical consultation, advice or treatment from a physician or had taken prescribed medication.
WHEN I APPLY FOR DISABILITY INSURANCE DO I HAVE TO DISCLOSE ANY PRE-EXISTING CONDITIONS?
Yes. If a condition arises and is found to be due to a pre-existing condition, benefits will only be paid as long as the condition was disclosed and not misrepresented on the application and is not excluded by a policy amendment rider.