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.