(IBR) Sun Life Financial rolls out group voluntary disability insurance
IBR is reporting that Sun Life Financial has “introduced a flexible set of voluntary group disability insurance options, including Voluntary Short Term Disability (VSTD) and Voluntary Long Term Disability (VLTD) for workers.”
“According to the life insurer, the policy has been developed to fulfill the diverse financial needs of the US workforce and comes with an duration benefit option, which determines the benefit term for a qualifying disability.”
BEWARE when you buy. The article is chock full of vague insurance company jargon. For instance, “duration benefit” means that Sun LIfe will write a policy that only pays for a specified time. For some insurers, this means as short as 12 months. It is true that group plans (covered by the federal ERISA laws) are much cheaper than individual disability coverage, but you get what you pay for. There are many of these types of policy provisions that limit how much coverage you are actually getting. Your employer may not even know they have bought a group policy that only offers you limited benefits.
You will also want to see if the plan you are buying at work cuts your benefits when you receive “other income,” like Social Security Disability, because of a disabling illness or injury. See How Your LTD Plan Cuts Your Disability Benefits With “Other Income”.
I am not saying you should not buy Sun Life’s voluntary disability insurance (or any other disability insurance through work). It is certainly fine to buy this cheaper coverage, but know what you are getting and know if you need an individual policy to supplement it.
Here are two tips when you buy group disability coverage through your employer’s plan at work:
- Ask your employer’s H.R. office for a full copy of the plan and the insurance policy that funds it. Read the documents. That way, you will know what you are paying for. If you dont’ understand them, get advice from a disability benefits attorney about what you bought.
- Go shopping for individual disability insurance to supplement your employer’s group coverage. Compare the prices. Individual Disability Insurance can offer longer and more valuable coverage, as well as being regulated only by state law that can more favorable to the insured person, not the insurance company.
John Tucker offers free reviews of disability insurance policies. If you have read your disability insurance papers and have questions about the coverage, call Disability Attorney John Tucker at (727) 572-5000.
- Disability insurance can save family finances (miamiherald.com)
- Disability insurance can save family finances (seattletimes.nwsource.com)
- Guardian’s New ProVider Plus Individual Disability Insurance Offering Provides Savings for Anesthesiologists, Nurse Anesthetists, ER and Pain Management Physicians (prweb.com)
- Understanding disability insurance: Don’t wait until it’s too late (insurance.com)
- How Your LTD Plan Cuts Your Disability Benefits With “Other Income” (erisadisabilitylawyer.com)