Will Your Life Insurance Coverage Continue While You’re Disabled?

While both life and long-term disability insurance provide income protection, they are two distinct policy types triggered by different life circumstances. Basically, long-term disability insurance pays a percentage of your former salary if you fall seriously ill or face a condition that prevents you from working. On the other hand, life insurance safeguards your family by providing your beneficiaries a lump sum to cover expenses after your death.

If you become disabled and have group health insurance, it is important to contact your employer or trust fund to see if your life insurance benefit continues while you are on disability. Some plans may even have a provision to waive the premium during a period of disability when it may be difficult to afford.

For example, if you have a waiver of premium rider for your life insurance policy, you may be eligible to stop making payments and to keep your policy in force until you return to work full-time. Be sure to find out about any age limitations for receiving the benefit, such as if you are over the age of 65.

In addition, life insurance companies may have different definitions of what constitutes a disability, so it is important to understand what is covered by your plan. Notably, long-term disabilities are more serious than workplace accidents, which are typically covered by workers compensation plans. Most are diseases, serious injuries and chronic conditions that are not covered by short-term, employer-provided disability benefits.

Protecting your income in the event of a serious illness or disability is extremely important to you and your family. In 2019, make a resolution to understand your group health insurance coverage, as well as the options available to you, before an unexpected health event occurs.

Pacific Federal is a subsidiary of Zenith American Solutions.