Long term disability insurance is a form of insurance that provides financial protection for those who are unable to work due to a disability. It is meant to cover expenses such as rent, mortgage, bills, and other necessary expenses during a period when one cannot work due to a disability. However, long term disability insurance comes with several caveats, one of which is the pre existing condition limitation. In this article, we will explore what pre existing conditions are and how they impact long term disability insurance coverage.
What are Pre Existing Conditions?
Pre existing conditions refer to any medical condition, injury, or illness that existed before the policy was purchased. Examples of pre existing conditions include diabetes, heart disease, arthritis, and other chronic illnesses. A pre existing condition can also refer to any injury or illness that one was receiving treatment for before the policy was purchased.
Why Pre Existing Conditions Matter for Long Term Disability Insurance
Pre existing conditions matter when it comes to long term disability insurance because they can limit or exclude coverage for specific conditions. This means that if a policyholder has a pre existing condition, they may not be covered for it if they become disabled and cannot work. Insurance companies use pre existing conditions to mitigate their risk and prevent individuals from purchasing a policy and filing a claim for a condition they knew they had before purchasing the policy.
How Pre Existing Conditions Impact Long Term Disability Insurance Coverage
When a policyholder has a pre existing condition, it can impact their coverage in several ways:
Exclusions: Some long term disability insurance policies may exclude coverage for specific pre existing conditions. This means that if a policyholder has a pre existing condition, they may not be eligible for benefits related to that condition.
Waiting Periods: Some policies may have a waiting period before coverage for pre existing conditions is included. During this period, the policyholder is not eligible for benefits related to their pre existing condition.
Increased Premiums: Insurance companies may charge higher premiums to individuals with pre existing conditions. This is because individuals with pre existing conditions are considered a higher risk to the insurance company.
How to Navigate Pre Existing Conditions and Long Term Disability Insurance
Navigating pre existing conditions and long term disability insurance can be challenging. However, there are several steps individuals can take to help navigate the process:
Understand the Policy: It is essential to understand the policy’s terms and conditions before purchasing long term disability insurance. This includes any exclusions or waiting periods related to pre existing conditions.
Disclose Pre Existing Conditions: When applying for long term disability insurance, it is essential to disclose any pre existing conditions. Failure to do so can result in a denial of benefits if a claim is filed.
Shop Around: Different insurance companies have different policies related to pre existing conditions. It is essential to shop around and compare policies before purchasing long term disability insurance.
Consider an Insurance Broker: An insurance broker can help individuals navigate the complex world of long term disability insurance and find a policy that meets their needs.
Know Your Rights: Individuals have the right to appeal a denied claim. It is essential to understand the appeals process and take advantage of it if necessary.
Conclusion
Pre existing conditions can limit or exclude coverage for specific conditions when it comes to long term disability insurance. It is essential to understand the policy’s terms and conditions, disclose any pre existing conditions when applying, shop around for policies, and consider working with an insurance broker. By taking these steps, individuals can navigate pre existing conditions and long term disability insurance and ensure they have the coverage they need in the event of a disability.
