Common Questions: When Disabled Must I Pay Policy Premiums? Must I Maintain Medical Malpractice Insurance While Disabled
Disability insurance premiums are paid for on an annual, quarterly, or semi-annual basis. Often your employer pays the premiums for group coverage. But what happens when you become disabled? Do you have to continue to pay the premiums? The answer is "yes", until the company determines that you qualify for disability income benefits. Once the insurance company notifies you that they have accepted the claim, if the policy contains a "wavier of premium" clause, you no longer have to pay your premiums. Keep in mind that you should have the company reimburse you for any premiums you paid during the investigation period.
Waiver of other premiums: Often there is a provision in life insurance policies waiving your premium if you are determined to be totally disabled. Some mortgages contain a rider that provides that mortgage payments will be reduced or even waived if you are disabled. Some credit card companies will even reduce or waive interest payments on outstanding accounts if you become disabled. Obtain these policies and contracts and review them carefully with your lawyer to determine if any of these options apply to you.
If you are a physician and you become disabled, medical malpractice insurance contains waivers of premiums too. Typically you would need to keep malpractice insurance in place for several years after you stop working. Tail insurance means that the insurance company will still cover you for claims made for a period of time when you were working. Bonny G. Rafel LLC, can help you with these issues.