Replacing Workman's Compensation With Disability Insurance
- Thread starter The DI Doctor
- Start date
disability Insurance Reso
New Member
- 15
There are Major difference between the two insurances and with IDI, unless there are exceptions for Pre-x conditions, have no limits, as WC does, as well as rate and other guarantees!
disability Insurance Reso
New Member
- 15
Firstly,WC ONLY covers ON the job injuries (and some sickness that are DIRECTLY attributable to the job).
WC doesn't cover for example, falling off the ladder at home etc., and only pays for a limited period og time and has a cap on how much.
Compared to being paid (depending on your occupation) to 65 with many options that can let you collect MORE under MORE scenerios including, but not limited to, working elsewhere (and collecting the FULL monthly benefit/tax FREE)as the definition of total disability allows!
Larry
(800-551-6211)
WC doesn't cover for example, falling off the ladder at home etc., and only pays for a limited period og time and has a cap on how much.
Compared to being paid (depending on your occupation) to 65 with many options that can let you collect MORE under MORE scenerios including, but not limited to, working elsewhere (and collecting the FULL monthly benefit/tax FREE)as the definition of total disability allows!
Larry
(800-551-6211)
So, if I fell off the ladder at work, hit my head on the corner of a desk, was hospitalized for a month, had a $300,000 hospital bill, would DI cover this? Probably not. Would Workers comp? Probably. Would my health plan? Probably not (should be covered by workers comp exclusion).
You make a great argument for why you should have DI on top of the workers comp coverage.
Also, from a practical matter, most DI caps are well below the workers comp cap... and yes, DI has a cap if you run the math, so many months until benefits expire times the monthly benefit, plus a few dollars for various things = the cap.
If a business owner has health coverage that includes work related injuries, DI can work to cover the income. If the health coverage excludes work related injuries (most do, though they tend to ignore this on minor things), then there can be a huge exposure here.
Dan
You make a great argument for why you should have DI on top of the workers comp coverage.
Also, from a practical matter, most DI caps are well below the workers comp cap... and yes, DI has a cap if you run the math, so many months until benefits expire times the monthly benefit, plus a few dollars for various things = the cap.
If a business owner has health coverage that includes work related injuries, DI can work to cover the income. If the health coverage excludes work related injuries (most do, though they tend to ignore this on minor things), then there can be a huge exposure here.
Dan
WC covers LOT for work related injury, illness . . . medical . . . accidental death & dismemberment.
Yes, it is job related, not 24 hour, but most DI plans are written on a non-occ basis. Tough getting a DI carrier to issue coverage on a blue worker beyond 5 years.
WC covers permanent partial disability, temporary partial disability and total permanent disability. Haven't seen a blue collar plan that does that.
I guess I am missing it. I just don't see how dropping WC and replacing with a DI plan is doing anything to protect the worker or the employer.
Several years ago I worked with a firm that was developing a 24 hour medical product for large employers that could fund an SIR of $250,000 or higher. The reinsurance was a bit of a problem, and finding TPA's who could adjudicate WC and medical claims was also a challenge. But we never did come up with an effective way of covering the LOT and AD&D portion of the exposure.
I doubt that has changed.
Yes, it is job related, not 24 hour, but most DI plans are written on a non-occ basis. Tough getting a DI carrier to issue coverage on a blue worker beyond 5 years.
WC covers permanent partial disability, temporary partial disability and total permanent disability. Haven't seen a blue collar plan that does that.
I guess I am missing it. I just don't see how dropping WC and replacing with a DI plan is doing anything to protect the worker or the employer.
Several years ago I worked with a firm that was developing a 24 hour medical product for large employers that could fund an SIR of $250,000 or higher. The reinsurance was a bit of a problem, and finding TPA's who could adjudicate WC and medical claims was also a challenge. But we never did come up with an effective way of covering the LOT and AD&D portion of the exposure.
I doubt that has changed.
disability Insurance Reso
New Member
- 15
Dan...WC also covers medical bills for on the job injuries, so under your thinking,why carry hospitalization etc.
The point is, there is no one policy that will be ALL things to ALL people!
Rather than giving you piece meal answers, if you wish, give me a call (800-551-6211) and I'll spend as much time with you as necessary and FYI, even some blue collar workers CAN get a benefit period to 65!
Larry
www.di-resource-center.com
The point is, there is no one policy that will be ALL things to ALL people!
Rather than giving you piece meal answers, if you wish, give me a call (800-551-6211) and I'll spend as much time with you as necessary and FYI, even some blue collar workers CAN get a benefit period to 65!
Larry
www.di-resource-center.com
Last edited:
Larry -
Explain it here, so everyone can learn. Fill in the gaps. Again, I understand (and believe in) DI reasonably well. I just don't understand how it could replace workers comp, except for the income piece.
And yes, you carry medical because you get sick and have injuries off the job. When they are on the job, workers comp covers it (if it is job related).
Dan
Explain it here, so everyone can learn. Fill in the gaps. Again, I understand (and believe in) DI reasonably well. I just don't understand how it could replace workers comp, except for the income piece.
And yes, you carry medical because you get sick and have injuries off the job. When they are on the job, workers comp covers it (if it is job related).
Dan
- 264
Here in Tennessee most employers that I have spoke with do not carry WC on themselves. That is when I show them DI and how it will cover them on and off the job I know everyone here dislikes AFLAC and I am not a cheerleader for them right now either. But they do offer on and off the job DI for Owners of the business.
That being said I just started in the major med field and don't know if their Major Med covers occ related injuries or not but will make sure my clients understand that they should check.
That being said I just started in the major med field and don't know if their Major Med covers occ related injuries or not but will make sure my clients understand that they should check.
- Thread starter
- #30
The DI Doctor
Expert
- 32
Do health insurance plans not cover part of what you are describing?
In theory I think its great that Worker's Comp covers medical bills, rehab, and some income. In reality I have watched family go through Worker's Comp and the situation is much different. It would be more honest if they simply said, "Go home and stop breathing, you are hurting our bottom line."
I believe Worker's Compensation is good for some people and some situations. For others situations it is possible to look at the available options between health insurance, disability insurance, and Worker's Compensation to make sure that business and their particular workers have their unique situation addressed as opposed to trying to have one blanket solution work for everyone.
I am specifically a disability expert, and for the reason that I do not apply my time and energy into any other area. As such it is my desire and goal to get the best disability insurance information possible into the hands of financial planners that they may use it in designing a comprehensive financial solution for their clients. When and where Worker's Compensation is not the answer for key employees that have at least 1% ownership, I know that disability coverage can be part of the solution.
In theory I think its great that Worker's Comp covers medical bills, rehab, and some income. In reality I have watched family go through Worker's Comp and the situation is much different. It would be more honest if they simply said, "Go home and stop breathing, you are hurting our bottom line."
I believe Worker's Compensation is good for some people and some situations. For others situations it is possible to look at the available options between health insurance, disability insurance, and Worker's Compensation to make sure that business and their particular workers have their unique situation addressed as opposed to trying to have one blanket solution work for everyone.
I am specifically a disability expert, and for the reason that I do not apply my time and energy into any other area. As such it is my desire and goal to get the best disability insurance information possible into the hands of financial planners that they may use it in designing a comprehensive financial solution for their clients. When and where Worker's Compensation is not the answer for key employees that have at least 1% ownership, I know that disability coverage can be part of the solution.
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