Lump Sum Disability Insurance

If you are looking for a lump sum disability insurance quote, Medicare Insurance Finders can provide you with quotes from Lloyds of London and Monitor Life Insurance Company. Starting in April 2013, we will be offering online lump sum disability insurance rates.

The lump sum benefit will provide the insured, a specific amount of money in a single cash payment after the policy waiting period. The waiting period will be 12 consecutive months after the insured has become disabled. Basically, this means you will not receive payments from the policy until you have been "on claim or disabled" for 12 months.

Disability Insurance Basics

There are several types of disability insurance. The two most common types of disability insurance are: short term disability and long term disability. Normally these are provided through an employer and offered with the health insurance package.

Short Term Disability usually covers short term disabilities, has a waiting period of two weeks, and usually 60-70% of salary replacement. Most of the time you will not find 100% replacement of income policies due to the fact that it would be an incentive for people, not to improve. Please don't think we are saying that short term disability individuals are faking their issues, we are just explaining why most insurance companies do not offer 100% replacement.

Long Term Disability is more complicated and usually varies. Longer waiting periods are common as well as longer payouts. Premiums are usually paid for by the employee and it will usually cover 70% income replacement.

Lump Sum Disability Insurance

The lump sum disability insurance explained in the first paragraph of this policy is beneficial for several reasons:

  1. It provides accidental death coverage. If an insured dies to to an accident or injury the policy will pay equal to the lump sum benefit chosen.
  2. Occupation coverage is offered. A lot of disability policies will not pay if you have the ability to perform any job. This policy will provide coverage if you are unable to perform your occupation - which is an awesome feature.
  3. There is also a optional Monthly Benefit which will pay during the 12 month waiting period. There is an additional premium for this but it is well worth it if you would be in trouble if your income dried up.

For more information about our lump sum disability insurance please give us a call.