Anyone know anything about disibility insurance from Pennsylvania Life Insurance Co.? A salesmen stopped by the job site the other day and wanted to sell me some. Really, it sounds like a good thing, and my wife wants me to get some kind of diibility insurance in case I get hurt and am unable to work.
Thanks,
Matt
Replies
Don't know specifically about that company but I've looked into disability a few times and it ain't cheap, especially if you want to replace more than a small percentage of your income and you don't want to wait 9 years before the policy kicks in. I still have some quotes sitting in the proverbial stack on my desk, nagging at me and promising to put a dent in the cash flow if I sign up. As with any insurance, buy from a highly rated company. All my policies right now are thru the same broker, who has managed to come up with good deals and good carriers for everything. Not sure what I would think if a guy came door to door selling...
For example, the insurance cost ~$44 a month for a $1000 a month benefit if you are injured and unable to work for 7 days. There are other levels of payment/benefits you can select. The salesman said that the payments start almost immediately. You said >> Not sure what I would think if a guy came door to door selling... << That is probably what has me worried. I have no idea if this guy is legit or not. Could even be a scam for all I know.
Has anyone bought any insurance from Pennsylvania Life Insurance Co.? Sounds like a big company, but what do I know? They have a nice web site, but so what. Thanks,Matt
My bil sold for the company and I bought some too but dropped it when I went to work for another company that had insurance in their benefits. He has since moved onto another company. He says that AT THE TIME he didn't realize that this company will approve you BUT when you make a claim is when they underwrite you . The difference is substantial.
For example- you sign up and they take your $. In 2 years you make a claim for a back injury. At that time, they look into your history and try to find a pre-existing condition that means you are not eligible for the coverage or modify the claim payable to you.
I am in the process of buying some DI from another agency. In preliminary discussions with the agent we talked about this problem. HIs companies that he represents does not do things this way BUT it means that the physical tests and scrutiny was extensive. Theyare underwriting the policy at time of application. ( I did life insurancre at the same time) It means that when my policy gets approved I have insurance. (as long as I pay!!)
All I can advise is to ask questions and talk to different people to get advice. Please note that Penn may have changed the way they do things. Do not be afraid to get a 2nd opinion nor be pressured into purchasing their or anyone's product IMHOFirst we get good- then we get fast !
I'm not sure I understand the word Underwrite. The salesmen told me ;-) that when you sign up, you are accepted and covered for 30 days. In order to sign up you have to fill out a medical questionnaire. Then, according the salesmen, Penn Life has 30 days to check you out, to try too find out if you have any chronic medical problems, etc. Then after the 30 days, you are covered on a permanent bases as long as you continue to make payments.
As far as them not covering you in the event of an accident, I thought that was pretty much what all insurances companies do - try to get out of paying claims, so I would expect that, but also would expect to collect benefits if I had not deceived the insurance company by lying about my health, etc. Am I being too naive here? Matt
be careful of 2 things: Contestability period and definition of disability. There can be a 2 year contestability period and disability defined as unable to perform in any occupation, not just your occupation.
SHG
Thanks SHG... I'll have to look into the "Contestability period" thing. Matt
Matt-
I had a salesman make me a quote in July. He did the same, stopped by where I was working. I make it a point to never write a check right there, so I "had to get back to him". Two days later I got hurt "downstairs" and was out for about 3 weeks. I did think the policy was a good one, but the costs were steep. This was the same company as you mentioned.
One thing that I liked was this program where for an extra $20 or so a month, you get your money back, minus any claims, after 20 years. Did he mention that one? I agree the insurance is good, especially in our work. I just am very leary of door to door sales in general.
ADH Carpentry & Woodwork
Quality, Craftsmanship, Detail
Hook:
I did not quite get it - did you buy any disibility insurance then, or do you have any that you purchsed yourself now?
thanks,Matt
Sorry 'bout that. I never did purchase. I plan to, but later when the money is more there. I liked the policy I was quoted. Money starts coming very soon after filing a claim.
I think dis. ins. is a good thing. There just has to be the money in the bank to pay for it. As for the way I was approached, I get kinda turned off by pushy people. But, as my missus and I agreed, without being pushed, I wouldn't do a lot of things!
ADH Carpentry & Woodwork
Quality, Craftsmanship, Detail
Dirishinme,
I have disability insurance through Penn Life. I got it the same way you are talking about. A rep showed up on my job site and made his pitch. It sounded good, but I was nervous about some guy showing up and trying to get me to buy his product. Honestly, I can't remember what convinced me he was legit. I checked into it somehow, but I don't remember how.
Anyway, I've had it a few years and am happy with it. I filed a claim about a year and a half ago and they paid everything they said they would. My rep is a good guy and tries hard to get his clients their benefits.
One thing I like about this insurance is that your premium doesn't go up when you make a claim. I thought if I did make a claim my premium would shoot through the roof, but from what my rep says, as long as the policy is in good standing they can't raise my individual rate. It didn't go up when I made my claim.
Good Luck.
-Maydell
With 3 post since signing up this month, no offense, but do you sell Penn Life insurance?
Just a thought. But glad your experience was a good one.
I got something in the mail from american express cards,offering 1 million or 1.5 in accidental dismemberment with a tiny 5000 death benifit all for 135.00 a year.
Scribe once, cut once!
Jagwah,
I do not sell Penn Life.
I just remember how unsure I was when I gave that rep my hard earned money. I'm just doing what I can to set Dirishinme's mind at ease.
Hey Matt,
I am a financial type with an extensive woodshop. While I am qualified to sell disability, I do not, just for reference.
Disability is a very tricky item. Definitions, for example are very important. In some policies, you will receive payment if you can't work at all. With others, you will not receive payment if you can do something else, other than your trade. With other types , you will receive payment if you can't do your specific trade.
Another definition, "exclusion time" relates to when you will actually be eligible to receive payments...that is a variable aspect of the plan. These are just a few examples.
Most trades people I know do not take out individual disability, primarily due to expense. But if you end up needing it, it's the cheapest thing you ever bought! I have no opinion on Penn, but I have quoted it in other forms of insurance. It really depends on the state in which you operate. Usually, unions offer disability with the other benefits available. For non-union trades, it's up to you! Good luck.
I bought a disability policy which provides a $4000/mo. benefit. The key feature is the "own oc"- own occupation. This means that if you cannot perform tasks associated with your profession, you receive the benefit even if you can be otherwise employed. Very popular with surgeons, etc.
Keep in mind that as a safety net Social Security does offer a disability benefit to all taxpayers in need.
without all the specifics ...
generally ...
what's a policy like that run?
or ... get as specific as ya like. I'm all ears ...
Jeff
Monthly premiums (auto-debit) $369.00. Peace of mind !.
Baseboard been VERRRY good to me
Just to give you all an update: Yes, the disability insurance is for "own occupation". My wife talked to the guy and point blank asked him: "how do I know you are legit". He provided a business card, some documentation, and a pamphlets on the product he was selling. He said he only sells insurance for Penn Life. That, and the information above that everyone provided make me feel a lot better. I'm going to buy a (somewhat minimal) policy - nothing like the high rollers like "Miles of Trim" has though :-)
Matt
Edited 10/8/2004 7:17 am ET by DIRISHINME
How about posting a brief cost/benefits level of the policy you get? Always good to here it from the horses mouth sort of speak. DanT
For $44 a month I could collect $1000 a month of tax free income if I am hurt anytime such that I can't perform my present job. By anytime, that means day or night. I'm 50 years old, which makes a difference in the premium cost. Benefits start 7 days after I'm out of work. Benefits are for life, as long as I'm unable to work at my job. Salesmen said something about coverage is higher for roofers and a few others, and that their benefits may not be for life. The policy also includes a $1000 surgery benefit, which is intended only to be a supliment to my regular health insurance (which I get through my wife's employer). Also included is an Accidental Death Benefit of $25k.
The guy will also sell me some kind a sickness protection, which basically says if I have a long term sickness I would still have income. My wife wants me to buy that too, but I don't have any pricing on that yet. Matt
matt.. i used to have a disability policy on myself.. the premiums got to very burdensome..
and it wasn't too long before i decided i'd be better off investing the premiums in a portfolio ..
the fine print and qualifications of the policy made it more like a lottery than a policy..
also to keep the premiums low.. i think i had a 3 month self-insured delay...
my general take on insurance is this ( life and disability ). and it's contrary to most of the advice you get..
i like policies that you can pay up and let them ride... i don't like escalators in the premium structure...
in 30 years of business i almost always got into a position where i had to make bad decisions... like keep the house or lose the disability policy
we're still in business, we still have the house.... we don't have the policy..
when the rainy days keep comming and comming ... something has to give.. if your business is structured so you can ride out all the vagaries and keep paying ALL of your monthly obligations.. then go for it.. buy the policy..
if i had invested those disability premiums for the 10 years i had the policy.. i'd still have that to show for it...Mike Smith Rhode Island : Design / Build / Repair / Restore
I see what you are saying, but what if you did have a disabling injury while you had the policy? And I'm looking at $44 a month as pretty minimal, although, I need to check into the escalating premium thing. Not to throw a turd in this punchbowl, but I'm thinking what if I had a MC accident or something...
BTW - re investments, yea, I've got some, and I do have something to show, but it's not like they are a golden bullet or anything. I have a few different investment accounts, with different companies, and would characterize them over a 15 year period as having lack luster returns. Matt
matt... $44/month sounds pretty good..
especially if it gives your wife some peace of mind...
but is it an entry premium.. i mean what happens at ge 55... age 60.. age 65..?
Mike Smith Rhode Island : Design / Build / Repair / Restore
not that it helps cover all the bills ...
but I have death and disability ins on the mortgage.
don't think you can buy into it after the fact .... think it's at signing only.
just a coupla bucks extra each month ....
but if the time ever comes ... it'll be nice to know the house is paid off.
$44/month .... don't sound for a little extra too .... will have to look into that.
Jeff
matt... $44/month sounds pretty good..
especially if it gives your wife some peace of mind...
but is it an entry premium.. i mean what happens at ge 55... age 60.. age 65..?
Mike, it really doesn't matter if it has an escalation clause. When the premium escalates to a level that is not economically feasible, he can simply cancel. There's no reason to base your decision to day, because of what might happen in ten years.
Of course, if it is going to jump to $200 per month in 90 days...that's a differnt story.
blueIf you want to read a fancy personal signature... go read someone else's post.
blue.... the devil is in the details..
if you carry it for 10 years and everything is rosy.. at the end of ten years you have nothing.. if you invest the $44/month... at the end of ten years.. you have something more than nothing...
this one sounds too good to be true... $0.27/ cents an hour for disability is pretty cheap... 1% ...hmmmmmmm?
OTOH.... if the ins. really does pay a lifetime disability and there are no serious loopholes... why wouldn't everyone have it ?...
i carried disability for about 10 years... but the restrictions and self insurance.... and the waiting perriod made it marginal... also ..i'm pretty sure the premiums were a lot higher than that.. this is when i was relatively young, in good health...
in the end i did exactly what you say.. i cancelled it and filed the paid premium invoices in the circular fileMike Smith Rhode Island : Design / Build / Repair / Restore
I've never bought it Mike. I tend to underinsure myself....probably stupid, but I'm stubborn about things like that.
A lot of rookie sales people start out doing the cold call disability thing because its cheap insurance (per month) and without a big portfolio, you gotta pay the bills somehow.
blueIf you want to read a fancy personal signature... go read someone else's post.
blue... other than GL & WC.. ie .. all of my business insurance is fine..
but my personal insurance.. woefully inadequate...
the thought of parting with all of those premiums just depressed the hell out of meMike Smith Rhode Island : Design / Build / Repair / Restore
Just to close the loop here, I'll tell you all that I ended up buying the insurance. $493/yr for the 1k/mo benefit level. If I never get hurt, it will be a total waste. But if I do get hurt, the annual premium will be paid back for in just 3 weeks of being out of work... I guess that is what insurance is all about - the "what if". Plus the piece of mind for my wife which Blue mentioned, which makes my life easier too. ;-) Matt