Recently I had a physician client call me. She was listening to a physician financial podcast that said that people who were working part time would not receive their individual disaiblity benefits. They need to be working full time at the time of claim.
THIS IS FALSE INFORMATION.
When you purchase your individual disability policy, you must be working at least 32 hours a week. HOWEVER, once you have your policy in place and yoiu are paying your premiums, the policy will pay benefits if you are not working full time.
Policies have language called “noncancelable, guaranteed renewable.” What this means is as long as you pay premiums, the company cannot increase your premiums or change your policy in any way.
There are two times when you need to prove you are working at least 32 hours a week. At the time of application to acquire coverage and again at age 65 if you wish to continue your policy. At age 65, the policy will expire. If you choose to renew your policy at that time, you need to show you are working at least 32 hours a week to maintain the policy.
I have seen firsthand how policies pay premiums for clients who are working less than full time at the time of claim. I had a pediatrician who initially purchased her policy while in medical residency. After she had her first child, she reduced her hours to part time. She continued paying her premiums and maintained the same level of coverage. When she had her second child, she had significant complications from childbirth and was completely disabled for two years. Since she had been paying her premiums, her policy paid the full benefit amount.
The same holds true for people who are taking a sabbatical or are in between jobs. If you continue to pay your premiums, the policy would still pay benefits if you became disabled. Since you would not have income to prove a partial disability, the policy would become a total disability contract.
Another example is I had a client who was taking a sabbatical and decided to continue their policy and paid the premiums. They were diagnosed with cancer and were not able to go back to work. Since they paid their premiums, the policy paid full benefits.
For more information about part time work and individual disability policy benefits, please contact Set for Life Insurance today!