Chicago Private Long-Term Disability Insurance Attorneys

Some of the major differences between private and group disability insurance include:

• Cost. Individual disability insurance policies tend to have higher premiums than group coverage, even at a similar level of coverage (due to the “bulk purchasing power” of group policies). However, you can generally purchase much stronger protections—for example, policies with a specialty-specific definition of disability, or non-cancelable coverage that prevents the insurance company from altering or canceling your policy in any way as long as you continue to pay your premiums.
• Customizability. Generally, individual disability insurance plans tend to be more customizable. Various optional riders may be available, such as cost of living adjustment, partial or residual disability benefits, or lifetime benefits. These can give you a chance to personalize your coverage to suit your needs.
• Portability. Individual insurance coverage is portable, meaning that it stays with you even if you switch jobs. Group insurance coverage, by contrast, will terminate when you end your employment.
• Underwriting. Individual disability insurance is typically underwritten specific to you—your medical history, the type of work you perform, etc. To obtain this type of coverage, a blood test or medical examination may be required.
• Your rights. Because private disability insurance policies are governed by state contract laws, you enjoy different rights and protections. For example, people with private individual disability insurance can choose to sue an insurance company directly without going through an administrative appeals process. In Illinois, you can also seek bad faith damages if you believe the insurance company was deliberately dishonest or malicious in denying your claim.