In healthcare, now more than ever, the only thing that is certain is change. When it comes to the Affordable Care Act (ACA), the increasing complexities in the law, and constant modifications being made since its inception, it’s crucial that you consult professionals who can keep you in compliance with the law and advise you on multiple plan design alternatives. With thousands of plans available among various carriers, there is no “one plan fits all” approach. With the yearly cost of healthcare steadily on the rise, it’s of great importance to have an advisor who is well-versed in plan design strategies that allow organizations to continue offering quality group benefits to their employees while controlling costs simultaneously. At First Louisiana, we think ahead for you and offer creative ways for your management to maintain a safe and healthy workforce, increase the quality of life for your employees and their families, and meet budget goals.
In addition to the traditional disability policies, there are several options you should consider when purchasing a policy:
Additional purchase options
Your insurance company gives you the right to buy additional insurance at a later time for an additional cost.
Coordination of benefits
The amount of benefits you receive from your insurance company is dependent on other benefits you receive because of your disability. Your policy specifies a target amount you will receive from all the policies combined, so this policy will make up the difference not paid by other policies.
Cost of living adjustment (COLA)
The COLA increases your disability benefits over time based on the increased cost of living measured by the Consumer Price Index. You will pay a higher premium if you select the COLA.
Residual or partial disability rider
This provision allows you to return to work part-time, collect part of your salary and receive a partial disability payment if you are still partially disabled.
Return of premium
This provision requires the insurance company to refund part of your premium if no claims are made for a specific period of time declared in the policy.
Waiver of premium provision
This clause means that you do not have to pay premiums on the policy after you’re disabled for 90 days.
What are types of disability insurance?
There are two types of disability policies:
Short-Term Disability (STD) and Long-Term Disability (LTD):
Short-Term Disability policies (STD) have a waiting period of 0 to 14 days with a maximum benefit period of no longer than two years.
Long-Term Disability policies (LTD) have a waiting period of several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life.
Disability policies have two different protection features
that are important to understand.
Non-cancelable means the policy cannot be canceled by the insurance company, except for nonpayment of premiums. This gives you the right to renew the policy every year without an increase in the premium or a reduction in benefits.
Guaranteed renewable gives you the right to renew the policy with the same benefits and not have the policy canceled by the company. However, your insurer has the right to increase your premiums as long as it does so for all other policyholders in the same rating class as you.