I have been on my employer's group disability (own occupation to age 65, portable to $5000 without underwriting) but am applying for individual LTD insurance. Due to some past health issues, I did not qualify for Principal's own occupation policy but DID qualify for a to age 65 policy with a transitional occupation rider. The rider reads:
Does anyone have any experience with this rider? In other words, is it worth getting a personal LTD policy with this rider over a group own occupation LTD policy that is only portable for $5000/month (and I don't know how long I'll stay)?
I also did get an offer for a 10 year max own occupation policy from Ohio National. However, I will probably have to get further underwriting from them to get the full 60% benefit as they require me to have no group LTD insurance, and I am not able to cancel until the fall.
Thank you so much for your thoughts on (i) Principal's Transitional Occupation rider, and (ii) my situation in general.
Transitional Occupation rider (HH771)
You will continue to receive disability benefits if you become totally disabled in your occupation, but are working in another occupation. Benefits will be paid up to 100% of your prior earnings, but will not exceed the total monthly benefit. Benefits are payable until the end of the transitional occupation period To Age 65. If your policy has both the Residual Disability and Recovery Benefit rider and the Transitional Occupation rider, benefits will not be paid out under both riders at the same time. If you meet the definitions and terms of both riders, your monthly benefit will be the great of either Residual or transitional occupation benefit.
Does anyone have any experience with this rider? In other words, is it worth getting a personal LTD policy with this rider over a group own occupation LTD policy that is only portable for $5000/month (and I don't know how long I'll stay)?
I also did get an offer for a 10 year max own occupation policy from Ohio National. However, I will probably have to get further underwriting from them to get the full 60% benefit as they require me to have no group LTD insurance, and I am not able to cancel until the fall.
Thank you so much for your thoughts on (i) Principal's Transitional Occupation rider, and (ii) my situation in general.
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