July 11, 2008, Newsletter Issue #18: How a “Social Security” Rider Added to a Disability Insurance Policy Could Help You

Tip of the Week

You probably know that when you are disabled you are likely eligible for Social Security Administration benefits. However, depending on the terms of your group or individual disability insurance plan, you may or may not qualify for Social Security Disability Income (SSDI) coverage. They have their own definitions of disability which sometimes differ from the definition in your policy. Therefore, depending on your circumstances, you may qualify for a covered disability under the terms of your own policy, but you may be ineligible for SSDI.

This option normally allows you to increase your disability benefits by up to around $1,000 per month added to your stated level in your plan. Essentially, if you are eligible for benefits from your professional disability insurance coverage but are ineligible for benefits from SSDI, this option would provide you with an increased monthly benefit while you remain disabled.

In your search for the best disability insurance company for you, examine the Social Security option and weigh the cost versus benefit of adding this feature.

Refer to your insurance policy contract for specific information regarding your coverage and for actual terms, conditions and exclusions. The above statements are general in nature and may or may not reflect the actual terms of your insurance policy.

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