Disability Insurance Articles
Residual Disability Benefits for Partial Disability
by Michael Relvas
The residual disability benefit provided in a long-term individual disability insurance (IDI) policy is typically one of the most overlooked benefits and yet can also be one of the most valuable for consumers. When purchasing an IDI policy, it is important to consider the fact that nearly 95% of all long-term disability insurance claims are caused by illness, according to the Council for Disability Awareness. Since most illnesses do not appear or disappear overnight, it is fair to state that the probability of becoming partially disabled prior to or after being totally disabled is worthy of consideration.
Michael L. Relvas, CFP® is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS), 1355 Piccard Drive, Suite 380, Rockville MD 20850. Securities products/services and advisory services are offered through PAS, a registered broker-dealer and investment advisor, 240-683-9700.
Financial Representative, The Guardian Life Insurance Company of America (Guardian), New York, NY. PAS is an indirect, wholly owned subsidiary of Guardian.
Financial Balance Group, LLC is not an affiliate or subsidiary of PAS or Guardian.
PAS is a member FINRA, SIPC.
*Optional riders are available for an additional premium. All terms and conditions of the policy and rider must be met before benefits are payable.
** Disability insurance Policy Forms 1400, 1500 or 1600 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, New York, NY. This policy provides disability insurance only. It does not provide basic hospital, basic medical or major medical insurance as defined by the New York State Insurance Department. For policy forms 1400, 1500, or 1600, the expected benefit ratio is 50% (including NY 1400). For policy forms 1400-F, 1500-F, or 1600 F, the expected benefit ratio is 60% (NY only). The expected benefit ratio is the portion of future premiums that the company expects to return as benefits, when averaged over all people with these policy forms respectively. Product availability, provisions and features may vary from state to state.
This article is meant for general information purposes only. Any policy language citations are for illustration purposes only. They are not meant to be inclusive of all contract languages applicable to a particular claim. Please refer to the carrier’s contract for actual terms and conditions that apply. All claims are evaluated on a cases by case basis and such evaluations are based on the facts and circumstances that are unique to each.
Published March 21, 2012 by Michael Relvas