This information is designed to answer some of the general questions you may have. If you currently have a disability insurance policy, we hope you will review this information. Please note, however, this is not part of your disability insurance policy. For questions or changes to your policy, contact your Illinois Mutual agent or our Policy Service Department at 1-800-380-6688 ext. 758 or e-mail us.
What is disability insurance?
Disability insurance (DI), sometimes referred to as income protection, is exactly that -protecting your ability to earn a living. If you become sick or hurt and unable to work, you'll receive payments from Illinois Mutual, based on your particular policy. This check will help you continue paying living expenses such as rent, mortgage, car payment, food, insurance, utilities, medical expenses and more.
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Who needs DI?
If you depend on your ability to work and earn an income, you need disability insurance. If you cannot respond to, "Who will take care of your monthly expenses if you become sick or disabled and not able to work?" you need DI.
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How much DI do I need?
Add up all the benefits you are entitled to under your employer program and other individual disability insurance you may have, along with the monthly income you could count on from other sources such as your savings. If the total is less than your required income after taxes, you may be unable to pay your day-to-day bills while recuperating. You will want to consider purchasing additional disability insurance and should contact your agent. Your agent can prepare a needs analysis for you or you can use the DI calculator to estimate your need.
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When am I totally disabled?
It is important to consider how your policy defines total disability. During the own occupation period shown on your policy schedule, you are considered totally disabled if you are sick or injured and cannot perform all of the substantial and material duties of your regular occupation.
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Am I covered by group disability benefits?
First, you need to find out exactly what benefits your employer offers in the event of a disabling illness or injury. Most employers allow some short-term sick leave, which may last from a few days to as much as six months.
You may also have group long-term disability coverage through your employer. Typical group long-term disability benefits replace about 60 percent of salary (which is generally subject to a maximum and does not include bonus or commission), start when short-term benefits are exhausted, and continue anywhere from five years to life. Often, group long-term insurance is fully paid for by employers without contributions by employees. As a result, employer-paid disability income benefits are subject to income tax, and you should take this into consideration when evaluating your needs.
Questions to ask your employer about your group disability plan:
- Find out how long you must wait before benefits begin and how long payments will continue during your disability.
- Ask how much of your income will be replaced during a disability. Be sure to ask if there is a cap on the amount and if bonus or commissions are considered as part of the calculation.
- Find out whether your employer's plan takes other disability coverage (such as government programs) into account when calculating your long-term disability pay.
- Ask for a booklet describing the disability coverage your company offers.
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What about Social Security disability benefits?
Most salaried workers in the United States participate in the federal government's Social Security program. Social Security is best known for its retirement benefits. But the Social Security Administration (SSA) also administers disability benefits.
Here are some important points to remember:
- Eligibility is based on being unable to perform any gainful employment, not just the job you were performing at the time the disability began.
- You are eligible for benefits after you have been disabled for five months and if the disability is expected to last 12 months or to result in death.
- Social Security payments may be reduced by disability entitlements under other government programs.
- After 24 months of benefits, recipients qualify for Medicare. If you want the medical insurance portion of Medicare, in addition to hospital coverage, you must enroll and pay a monthly premium.
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What do I do when my salary increases?
If you'd like to increase your benefit amount, we suggest you apply for an additional policy. To apply for a new policy, contact your Illinois Mutual agent or Policy Service.
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Would I ever want to change my plan?
If your company sick pay plan increases the number of days payable, you may want to increase your elimination period. We can easily modify your Illinois Mutual Policy to accommodate your needs.
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What do I do if I change my occupation or change jobs?
If you change your occupation, you should call your agent to discuss your current level of coverage. In the event that you change jobs, feel secure in knowing that your disability income policy is portable. It will move with you from job to job.
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What is an elimination period?
The elimination period, sometimes called a waiting period, is the number of days that must go by after you become totally disabled before any benefits are payable under the policy. Check your Policy Schedule for the elimination period of your policy.
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What is a benefit amount?
The benefit amount is the monthly amount you will receive if you are totally disabled. If you are disabled for part of a month, your benefits will pay for the days you are disabled. Check your policy schedule for the benefit amount of your policy.
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What is a benefit period?
This is the length of time we will pay monthly benefits during total disability, as stated on your Policy Schedule.
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Is my disability income policy good everywhere?
Yes. Your Illinois Mutual policy is valid for an accident or sickness incurred anywhere in the world.
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What if I go into military service?
We will put your policy on "Military Suspense" if you enter the service or are called to military duty. You do not have to pay premiums, and benefits are not provided while you are in the service. You need to notify Illinois Mutual of the date you go into the service. To reactivate your policy, notify us within 60 days of your discharge.
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Is business protection available?
Income replacement insurance is particularly important if you own a small business. In addition to standard disability policies, as a business owner, you may be eligible to purchase a Business Expense Policy. This policy will reimburse you for your ongoing monthly business expenses such as rent, utilities, and other employees' salaries during your disability. This will allow you to keep the doors of your business open until you are able to return to work.
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What is the process if I need to make a claim on my DI policy?
We want to pay your benefits as soon as possible. Help us by notifying the Benefits Department immediately, even if you are not certain your total disability will extend beyond the elimination period. Please do not wait until the elimination period has expired or you have returned to work to notify us. Doing so could delay your claim. We will send claim forms to be completed by you and your doctor. For additional information, contact us at 1-800-437-7355, ext. 752 for Individual DI and ext. 747 for Group DI or e-mail us.
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Are DI claim forms important?
Yes. Before making a payment, Illinois Mutual needs to have a statement from you as to the reason for your disability. We also require a statement from your doctor confirming your disability and stating the expected period of disability on a month-to-month basis.
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When can I expect my first DI claim check?
Once your claim has been approved, your first check should be received about 45 days after the elimination period of your policy has passed.
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What DI benefits will I receive if I am totally disabled less than a month?
If you are totally disabled less than one month after the elimination period has expired, benefits are payable for each day of total disability.
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Do I pay premiums on my DI while I'm disabled?
Your Illinois Mutual policy includes a Waiver of Premium provision. This means, after more than 90 days of continuous total disability, no further premiums need to be paid while you are disabled.
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