FAQ – Disability Insurance
FREQUENTLY ASKED QUESTIONS ABOUT DISABILITY INSURANCE
WOULD I BE COVERED FOR BOTH ON THE JOB AND OFF THE JOB INJURIES AND ILLNESSES?
Yes. This disability plan will cover you 24/7/365. It will follow you anywhere in the world and provide benefits if due to a sickness or accident you are not able to perform the duties of your occupation.
IF I DO NOT RESIDE IN THE U.S. CAN I PURCHASE THIS COVERAGE?
Unfortunately due to licensing and insurance regulations you must have an address in the U.S.A. in order for us to consider issuing this plan of insurance. Once issued this plan will follow you as you travel throughout the world.
IS THIS PLAN AVAILABLE IN ALL 50 STATES?
Currently it is not available in Rhode Island or Iowa.
ARE THE BENEFITS UNDER THIS PLAN IN ADDITION TO ANY OTHER DISABILITY BENEFITS WHICH MAY BE AVAILABLE TO ME?
Yes, provided that when combining all benefits the total does not exceed a 65% replacement of your previous income. If the combined benefits do exceed 65% of previous income then the benefit under this plan will be reduced to that level with a refund of unused premium.
IS THE DISABILITY BENEFIT TAX FREE?
Although we are not able to offer definitive tax advise we can state that in most cases benefits would be considered tax free. The IRS states that if you pay your premium with after tax dollars, then the benefit would be tax free.
WHAT IS AN ELIMINATION PERIOD AND WHAT CHOICES IN CHOOSING AN ELIMINATION PERIOD DO I HAVE?
An elimination period is very similar to the idea of a deductible which you have on other types of insurance such as auto, homeowners and medical. In regards to disability insurance the elimination period is the period of time which you are self insuring your loss of income. It is the number of days you must be totally disabled before a benefit becomes payable. The longer the elimination period (higher deductible) the lower the premium cost is for the insurance. This plan of insurance offers AMO members the choices of 90, 180, 270 and 365 day elimination periods.
WHAT IS A BENEFIT PERIOD?
The benefit period is the longest period of time that the monthly disability benefits would be payable should you remain totally disabled. If you are totally disabled at the end of the benefit period, no further benefits would be payable beyond that period of time.
IS THIS AN AGGREGATE POLICY?
No. This policy will pay benefits for up to the maximum benefit period, but if a person recovers and returns back to work for at least six months then the benefit period will reset itself for a brand new maximum benefit period.
WHAT IF I HAVE A RELAPSE OR ENCOUNTER A NEW DISABILITY WITHIN SIX MONTHS OF MY PREVIOUS ONE?
If your recovery is less than six months and you relapse or have a new disability, this will be considered a continuation of the previous disability. You will not have to satisfy a new elimination period.
WHAT SHOULD I EXPECT AT RENEWAL TIME?
Prior to the expiry date on your policy you will receive communications from underwriters in regards to the new terms for your renewal. You should anticipate a slight increase in premium based on the fact that you are now one year older. Additionally terms could change based on the experience of the block of business. It is also important to know that underwriters may refuse to offer renewal terms.
ARE ACTS OF PIRACY COVERED?
Yes. Provided the act of piracy or terrorism does not involve the use of nuclear, chemical or biological weapons. Weapons of mass destruction are excluded from the policy, however the use of conventional weapons such as guns, knives, bombs and walking the plank are covered.