- quote -

The Definitive answer is "maybe yes & maybe No"

Because you OWNED the contract before your newer group contract
came into play, it IS a CONTRACT, and WILL pay the benefits that
they CONTRACTED for ! ! ! ! ! ! !

HOWEVER, it IS imperative that you READ (read have attorney read)
BOTH contracts to determine if there is any wording in either contract
that will permit the Carrier to take into consideration any other existing
contract/contracts presently IN-FORCE.

One or both of them may have such a clause in their contract.
The worst that could happen is that you could be restricted to
receiving 100% of current salary.

In any event, the generally accepted thinking is to MAINTAIN the
personal contract to alleviate any possibility of not having coverage
in the event that the "job" peters out.

On Feb 12, 12:08 am, Alexei Lalas <alexei.la...[at]nospam.hotmail.comwrote:
- quote -

My understanding is that insurers won't normally pay out more than
65-70% of your total pre disability income. So yes you are double
insured, and the total payout will be lowered.

However after the 2 year period of disability, your 'own occupation'
policy would be very valuable. Because your employer provided policy
would require you to take any job they deemed suitable.

Unless you never contemplate being self employed again, or changing
employer, I would tend to keep the individual policy, costly though it
is. It is a very significant protection against future disability and
if your health happens to deteriorate, it will be much more expensive
to get it again.


======================================= MODERATOR'S COMMENT:
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Hello,

I had my own independent software consulting practice a few years ago,
during the technology bust. At that time, I purchased my own disability
insurance plan for income protection. The policy I obtained paid out
for "own occupation" i.e. if I couldn't do the job I was trained for.
Premiums are currently at ~$125/month.

Recently, I decided to return to the W-2 world and work for a large
company. This company provides long-term disability insurance. I
checked their plan, and it is basically a typical "2-year own occupation,
after that any occupation" type of plan.
i.e. if I was disabled, the insurance would pay my benefit for 2 years.
After that, I would have to prove I couldn't do *any* job for that plan
to continue paying me.

Now: this does mean that
(a) I am doubly insured (overinsured?) for disability;
both through my own plan, and my new employer.
(b) I purchased my own plan well before I joined my new employer.

I guess I'm trying to ensure that I'm not paying $125/month for something
that will not pay out if I get disabled, ostensibly 'cos I'm "overinsured".

I spoke to the insurance agent - he said that because of (b), this is not
a problem. i.e. if I was to get disabled, I would get the full benefits
of my own plan as well as my current employer's plan.

Is this correct?

Thanks in advance.

Alex.