Tips and Traps: Supplemental Long Term Disability Insurance?

May 6, 2014 11:50 AM

I have some long-term disability insurance through my employer. I'm thinking I'd like to supplement this with some additional LTD insurance I buy on my own. I have a couple of quotes from highly rated insurers through a broker I like. What should I be looking for when comparing these quotes?

For example, I know about the difference between own occupation and any occupation policies; COLA adjustments for benefits; riders that allow me to increase the coverage amount for future raises, etc., and policies that would allow me to "double-dip" if I were claiming disability, but wanted to do some work I was still capable of doing. But those are the kinds of details and considerations I'd like to hear about--as you might imagine, I had no idea about any of that before I started this process.

What's the scoop? What are the traps for the unwary? Are there insurers you've liked/hated?

posted by Admiral Haddock to Work & Money (2 answers total)

I've recently been looking into this as well, and the best source of advice and feedback I've found is in the forums at bogleheads.org. There are some excellent threads that discuss disability insurance, and you could perhaps post the quotes and details of the policies you are looking at there for feedback. Some longtime posters there are insurance agents who give feedback on the pros and cons of different companies and policies. Here is the bogleheads wiki page on LTD insurance and a couple of the threads I have found helpful: one, two, three, four.

From my reading there it seems like you are considering the right things. One thing I'm grappling with right now is whether to try to opt out of my employer coverage, since it seems that many employer-provided policies are not likely to actually pay if you become disabled (the plans have lots of loopholes) but having the employer plan can limit how much supplementary coverage you can obtain.
posted by medusa at 1:29 PM on May 6, 2014 [1 favorite]

First of all good for you to look into disability insurance. While my own employer's coverage is reasonably good, it is a sobering thought to consider what you'd actually need to support your dependents in case of long-term disability.

And thanks to medical advances it is that much more likely to happen.

Anyway just came here to say that if you are working with a broker you like the broker should be able to decipher any terms you may be coming across when comparing plans - it is what they do for a living. Also I went with Berkshire Hathaway, and have been pleased with it (especially not having to use it!)
posted by scooterdog at 4:22 AM on May 7, 2014