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Can disability income insurance be shopped?
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Are my benefits taxable?
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How much coverage should I purchase?
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How long does it take for me to get approved for disability insurance once I decide I want it?
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Can I apply to more than one company at a time?
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Other than Berkshire, who are the major players in the non-cancellable and guaranteed renewable insurance market in the United States?
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Can I reduce my benefits and/or eliminate features later if I can't afford the premiums?
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Can I increase my benefits later without underwriting?
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Can disability income insurance be shopped?
The fact is that you can order disability income quotes from Web sites,
insurance brokers and agents. The price for the same product must always be the
same. No one can sell it for less than anyone else. The rates are filed with
each state and there is no dealing, this is the law. The only exception is that
there are sometimes discounts available to members of certain associations or
other groups. For more information on association discounts,
contact us.
You may compare policies, but as you will easily find, the definitions are
complex. By trying to save a little money up front, you could cost yourself
many thousands of dollars at claim time.
What is important is getting the right policy that is suitable for you. You
also want someone with experience with underwriting to make certain that you
have the best chance of a favorable outcome.
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Are my benefits taxable?
Ordinarily, disability income premiums are paid for with after tax dollars.
This allows for your benefits to be received income tax free. In regards to
group LTD, you might be able to pay your LTD premiums with after tax dollars.
If so, you could receive the benefits income tax free.
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How much coverage should I purchase?
Generally, you can (and, if possible, should try to) replace about 60% of your
income with disability insurance with a total lines limit of up to about
$25,000 per month. In other words, if you make $100,000, you could get about
$5,000 per month ($60,000 per year = 60% of $100,000) We recommend that you
start with the best designed policy available. If it does not fit into your
budget, we can work with you to decide how to customize it in a manner that is
suitable for you.
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How long does it take for my application to get approved for disability insurance once I decide I want it?
The approval process is usually done in 2-5 business days after all
requirements have been received by the insurance company. The requirements are
1) Your application - which can be faxed 2) Proof of income (most recent pay
stub and 1040 with all schedules is sometimes required). This can also be
faxed. 3) Take a physical (we pay for this) 4) A telephone interview is done
from an independent agency. 5) Most of the time (but not always) medical
records referred to as "attending physicians statements or APS's" are required.
This can slow the receipt of requirements down as we have no direct control
over your doctor's speed in releasing records. This entire process including
getting all records, the exam, etc. normally takes about one month.
Once you mail or fax us your application, you will be emailed your private and
secure Underwriting File link. This takes you to a special area on our site
that allows you to track underwriting progress. If and when an APS is ordered,
you will see it on your file. You'll see the date it was ordered and your
doctor's name and phone number. If the doctor takes more than 5-7 business days
to release the records, feel free to call him or her and ask that they do so.
It really helps!
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Can I apply to more than one company at a time?
We can only apply to one company at a time. If you have applied elsewhere
please let us know up front. If you have been turned down for disability
insurance or otherwise applied elsewhere in the recent past it is extremely
likely that there will be an indication of application in the Medical
Information Bureau (MIB). If you do not disclose this to us up front, it will
immediately be a red flag for any underwriter and could present a major
obstacle.
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Other than Berkshire Life Insurance Company of America, who are the major players in the non-cancellable and guaranteed renewable insurance market in the United States?
They are Metropolitan, Northwestern, Unum-Provident, Mass Mutual, Illinois
Mutual, Standard Of Oregon, Union Central and Principal.
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Can I reduce my benefits and/or eliminate features later if I can't afford the premiums?
Ordinarily, the company will work with us to help you reduce the policy
benefits and/or eliminate features in the future, if you require it. However,
once you reduce benefits or eliminate features, you may not be able to restore
them in the future without full underwriting.
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Can I increase my benefits later without underwriting?
If you have purchased a Future Insurability Option Rider (FIO) you may increase
your benefits in the future per the policy's provisions. You will not need to
take an exam or answer medical questions to exercise FIO, but you must prove
evidence of sufficient income to warrant the increase.
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Policy Forms 0100, 1100 and 2100 are underwritten and issued by
Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly-owned
stock subsidiary of The Guardian Life Insurance Company of America
("Guardian"), New York, NY. Policy Forms NC111 and NC112 in CA are provided by
Guardian. Product provisions and features may vary by state. |
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