Maryland Disability Insurance

Disability insurance covers you by paying a set amount each month should you develop a disability or you are no longer able to work. The payout you receive helps cover your monthly obligations while you recover from your illness or injury and is based on your current income. Balderson Insurance works with several of the top insurers in the state to provide the right disability insurance to fit your needs. Call us at (301) 874-0772 to learn how we can help protect you.

What types of disability insurance are available?

Disability insurance comes in two general forms: Long Term Disability (LTD) and Short Term Disability (STD).

Short Term Disability coverage kicks in very quickly after you suffer a covered injury or illness (between 0 and 14 days depending on the circumstances) and pays you for a total maximum period of two years.

Long Term Disability coverage comes with a waiting period (also known as elimination period) of up to one year, depending on the plan. Many policyholders carry both short term and long-term disability so they can use their STD benefits until the waiting period on the LTD plan is passed. Long-term disability benefits can range from a few years to life, again depending on the plan you choose.

Special Provisions of Maryland Disability Insurance

There are some additional features and coverage options you should be aware of in choosing the right MD disability plan:

• Guaranteed Renewable: This gives policyholders the right to renew the plan at the same benefit levels as when it was first taken out. The insurer does have the right to increase the premium, however, so long as this rate increase is effective for each policyholder in your rating class.

• Non-Cancellable: This provision means that the insurer can only cancel your policy if you fail to pay the premiums. It also gives you the right to renew the policy annually with a rate increase or benefit reduction.

• Coordination of Benefits: Your payout is dependent on the level of benefits you receive from other sources. Your policy states how much you are to receive in total benefits after combining all your policies.

• Partial Disability Rider: Some plans include a rider that allows you to work part-time and still receive a partial disability payout.

• Cost of Living Adjustments (COLA): Inflation means your dollars purchase less goods and services over time. To help compensate for higher prices in the future, your policy may include a COLA rider that adjusts for cost of living increases based on data from the Consumer Price Index. If you select this option, your premium will be higher.

• Waver of Premium: This provision states that you no longer have to pay premiums once you have been disabled for at least 90 days.

• Return of Premium: This is a provision that requires your insurer to return a portion of your premium to you if you do not use your disability benefits for a specific period.

Have you considered what would happen if your monthly income went away? How would you support your family if you were no longer able to earn an income?

Your earning power is your greatest asset, and disability coverage helps protect that asset in the event of a worst-case scenario. Call us today at 301-874-0772 to discuss your disability insurance needs!