Producer Connection is The Standard Life Insurance Company of New York's quarterly online newsletter for Employee Benefits producers.
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Producer Connection is The Standard Life Insurance Company of New York's quarterly online newsletter for Employee Benefits producers.
Sign up to receive Producer Connection
what you think of Producer Connection and how we can make it better.
Some recent news reports suggest that disability insurance companies are overwhelming the Social Security Administration with applications for Social Security Disability Insurance (SSDI). Lawsuits have been filed against some carriers alleging that their practices force many people who file disability claims with them to also apply for SSDI benefits — even if they clearly do not qualify for the government program.
As an employee benefits adviser you need to understand how the carriers you recommend to your clients handle SSDI referrals so that there are no surprises when an employee files a claim. Here are three questions you should ask disability carriers about their practices:
SSDI benefits are an important source of income for disabled employees who qualify. The Social Security program offers some advantages that the typical LTD insurance plan does not, including cost-of-living adjustments, eligibility for Medicare and continued accrual of credits towards Social Security retirement. However, it’s equally important that you align your clients with carriers who are willing and able to take on the risk for which your clients pay premiums.