Just got back from a meeting with an insurance agent - my company, through this insurance company, is offering an additional LTD policy worth an additional 10% of your income. The LTD policy I have now covers 60%, but the benefits are taxable. This new policy isn't taxed.
Anyway, it came up in the discussion that I would be buying this new policy independent of my employer - so it would go with me if I left the company for any reason (and continued paying the premiums of course). And of course LTD policies don't start until you're out of action for 6 months.
The gears start turning ... if I become disabled, is there anything that prevents the company from dropping me like a bad habit before the 6 months are up - and the 60% LTD policy evaporates? It seems there must be, otherwise, what's the point of an LTD policy?
The insurance agent says he's seen that happen. But anecdotally, my boss says he knows people from my company who have been collecting the LTD for 10 years.
Anybody have any insight on this?
Anyway, it came up in the discussion that I would be buying this new policy independent of my employer - so it would go with me if I left the company for any reason (and continued paying the premiums of course). And of course LTD policies don't start until you're out of action for 6 months.
The gears start turning ... if I become disabled, is there anything that prevents the company from dropping me like a bad habit before the 6 months are up - and the 60% LTD policy evaporates? It seems there must be, otherwise, what's the point of an LTD policy?
The insurance agent says he's seen that happen. But anecdotally, my boss says he knows people from my company who have been collecting the LTD for 10 years.
Anybody have any insight on this?
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