Disability Insurance FAQ

Do you rely on the income you earn from working? Then long-term disability insurance belongs in your financial plan. This is especially true if you have a family to support. Long-term disability insurance is the most effective way to protect your greatest asset – your ability to earn an income and the lifestyle it supports. If you become too sick or hurt to work, a long-term disability policy can replace a portion of your monthly income so you can still pay the bills and take care of your family while you recover. This type of coverage is common among doctors, lawyers, accountants, nurses, architects, consultants, teachers, small business owners, freelancers, and more. If you do 1099 work, you likely don’t have any other coverage.

Long-term disability insurance covers serious injuries and illnesses that prevent you from performing the duties required by your occupation for an extended period of time, or even permanently. Rather than covering a set list of conditions, approval for long-term disability insurance benefit is determined by whether or not your diagnosis meets the criteria of your policy’s definition of disability. The leading causes of long-term disability claims include illnesses like cancer, heart attack, and diabetes, and musculoskeletal disorders like arthritis and back pain.

Long-term disability insurance generally replaces 60-80% of your pre-tax monthly income. Why not 100%? Since you pay premiums using after-tax dollars, any benefits you receive will not be taxed. Thus, your disability insurance carrier must account for this difference when paying benefits so you do not receive more from your policy than you would by working in your given occupation when healthy. Breeze offers monthly benefit amounts ranging from $500 to $20,000.

Benefits start when your policy’s elimination period ends. Also known as a waiting period, this is the amount of time you must wait after a disabling event occurs before you begin receiving benefits. Policies offered through Breeze feature waiting period options of 30, 60, 90, 180, or 365 days. It’s important to note that the waiting period you select will impact the cost of coverage. As the length of your waiting period decreases, monthly premiums increase (with all other factors equal).

Benefits may last as long as the benefit period you select for your policy. Policies offered through Breeze feature benefits period options of 1, 2, 5, and 10 years; or up to age 65 or 67. Like your policy’s waiting period, it’s important to note that the benefit period you select will impact the cost of coverage. As the length of your benefit period increases, so will your monthly premiums.

When applying for long-term disability insurance, the underwriting process may require you to take a medical exam before an offer for coverage can be made. Some companies, however, offer the ability to skip the medical exam if you meet certain requirements. At Breeze, applicants ages 18-50 can skip the medical exam if they are applying for monthly benefit amounts of $5,000 or less. But if you do need to take an exam, don’t sweat it – most exams can be done at home and only take about 30 minutes.