Disability Insurance

[Jeff Tanner]

>In a message dated 98-12-16 10:14:46 EST, you write:
>
><< I'm interested in what kind of disability insurance, if any, some of you
>might
> be using.  Is the PTG program the best coverage and rate or are there better
> ones out there?  I think social security pays some benefits in the event that
> you become unable to work.  Is it enough to get by?
> David Porter
> St. Louis, MO
>  >>
>
>
>David:
>
>I don't think the PTG insurance has a disability option. I have my self
>covered for enough to pay the mortgage on the house and the utilities. The
>rest, Jan will ahve to work and make ends meet.
>
>There are lots of different companies out there, but when you do get coverage,
>be sure there are two very important aspects: They can't cancell you no matter
>how bad health you are in, and they can't raise your rates.
>
>Wim


Regarding disability insurance, it may not be possible to lock a company in
to not be able to raise the rates.  If your agent has told you otherwise,
you might just want to read your policy.  He/she may have made that
statement to urge you to make the purchase.  I need to double check on
this, I could be mistaken.  As I said earlier, I'm not as familiar with
disability products as others, but the only insurance product I am aware of
in which rates can't increase is old fashioned Whole Life Insurance, also
commonly referred to as "Straight Life".  There is also a product out there
called "Hospital Indemnity", which typically does not increase rates, but I
can't recall if they are actually locked in.  But given the type of
premium-to-benefit ratio involved in disability insurance, it would make
sense to me that the company would protect itself here.  For most products
which deal with health issues, which includes disability coverage,
contracts typically provide that a policyowner can not be singled out for a
rate increase, but that the company can increase rates to all policyowners
on an equal basis.  If a company's claims begin to exceed its premiums,
then it becomes insolvent, and you certainly don't want that.

Another point which is very important is that once you've secured a plan,
that shouldn't be the end of the process.  It is in YOUR best interest to
stay in contact with your agent and reevaluate your coverage on a regular
periodic basis because your NEEDS CHANGE over time.  That's not just your
agent's excuse to come get you to buy something.  I often dropped or
lowered a client's coverage because it was no longer needed.  This applies
to any life, health, accident, disability, or any other type of insurance
you purchase for that matter.

It's the same premise with which we sell our piano service.  Educate
yourself about insurance.  It's worth your time to do so.  It is better to
know what you're buying than to let someone explain it to you, because
often, the agent just doesn't have the time to explain everything.  The
agent is often also trained to NOT explain everything or else the customer
might not buy.  That is not to say that this is shady.  But much like the
work we do, it is sometimes better for the CUSTOMER, if the customer
doesn't know everything.  Take it from experience.  I had prospects who,
after I explained things more clearly than other agents had, decided not to
purchase life insurance simply because they ignorantly believed that life
insurance was supposed to do something it never has done. (Kind of like
that client who adamantly believes that a piano tuning fee has always also
included cleaning?)  A couple of those very same "clients" later died with
no coverage at all.

Happy hunting,
Jeff ex-agent Tanner

Jeff Tanner, Piano Technician
School of Music
University of South Carolina
Columbia, SC 29208
(803)-777-4392 (phone)
(803)-777-6508 (fax)