What Is Disability Insurance Stacking?

Named one of the “Top Docs of Louisville” multiple times, Dr. Christopher C. Babcock, DMD, performs maxillofacial surgery at Louisville Oral Surgery and Dental Implants. Christopher C. (Chris) Babcock, DMD, is also a representative of the Guardian Life Insurance Company of America. He specializes in disability insurance products and strategies for individuals in high-earning professions.

Since disability insurance benefits can only reimburse a percentage of income, high-earning professionals may benefit from multiple policies, a process known as stacking. Individuals whose income is far above a single policy’s maximum monthly payout can increase their benefits by purchasing additional plans. While some disability insurers limit the total a policyholder can receive from any disability plan, this amount is usually much higher than the maximum monthly benefit.

Individuals can also use stacking to supplement older plans. For example, a professional may have obtained a cheaper policy with a lower benefit earlier in their career. After several years, the plan’s payout limit became a fraction of the policyholder’s current income. Buying an additional plan to fill the gap may be less expensive than replacing the older policy with a new plan with a higher payout. Stacking can also be used strategically by combining a plan with a short waiting period with a policy that has a longer period of coverage.

Long-Term Disability Insurance – Things To Know

Christopher C. Babcock graduated with a DMD degree from the University of Louisville, and is currently practicing as an oral and maxillofacial surgeon at Louisville Oral Surgery and Dental Implants. Christopher C. Babcock is experienced in various dental and reconstructive surgery procedures and has also promoted disability insurance awareness.

Long-term disability (LTD) insurance is an insurance policy that covers employees from loss of income when they suffer from the effects of an illness, accident, or injury over a long period of time. However, the insurance does not always apply to work-related injuries that may be covered by separate workers’ compensation insurance policies.

Often, LTD insurance is paid for and provided by employers. If an employer does not offer LTD insurance to its employees, or if an employee seeks additional coverage, the employee can independently purchase an individual LTD plan from an insurance agent. Some employers that do not provide LTD insurance to their employees build a relationship with long-term disability insurance companies, to ensure that their employees receive discounts when purchasing individual plans.

Occasionally, LTD insurance provided by an employer may not be sufficient to meet the needs of a disabled employee. In this case, the employee may opt in to an additional individual plan.

SSA Announces Proposed Changes to Social Security Disability Insurance

A graduate of the University of Louisville, Christopher C. Babcock, MD, DMD, is an experienced oral and maxillofacial surgeon. Dr. Christopher “Chris” C. Babcock is also a financial representative at Guardian Life Insurance Company of America and has given talks on disability insurance through public lectures.

Disability insurance is a type of insurance that helps provide income to people who are unable to continue with their occupation due to a disability. There are different types of disability insurances available and each type has a different set of rules for determining whether or not a person is qualified to receive benefits.

Some policies can be obtained through private insurers, while others are accessible through federal programs. Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) are two common US government programs that aim to help disabled individuals with their basic needs. Individuals that are eligible for the benefits of these programs are those suffering from disabilities who do not show any signs of improvement. Therefore, many SSDI and SSI recipients undergo a test known as a continuing disability review (CDR) to detect whether their condition is improving.

In November 2019, a proposed change to the two programs was released by the Social Security Administration. The new policy proposed would increase the frequency of CDRs each recipient must undergo annually. As stated by the Social Security Administration, this proposed adjustment would ensure that the programs stop giving benefits to recipients who are experiencing medical improvement, thereby minimizing the amount spent on disability benefits.