Like all group disability insurance, Kaiser disability insurance is a good deal if you are unable to qualify for a private policy from a top insurer. It functions best as a supplement to private policies.
Let’s examine the need to know facts about the Kaiser sponsored disability plan.
1. It is not specialty specific / true own occupation.
Benefits are reduced by your earnings and “other income benefits” that you are assumed to receive. Private policies pay the full benefit regardless of your other income/benefits.
2. No cost of living benefit option.
Benefits are not adjusted for inflation while you receive them. Private policies adjust the benefit by 3-6% to prevent inflation from eroding your benefits.
3. No recovery benefits.
If you lose your partnership status due to disability and recover medically but not financially, the group policy will stop paying benefits since you are no longer medically disabled. Private policies will continue to pay beyond your medical recovery should you continue to have an earnings loss of 15-20%.
4. You do not own the contract.
You are renting the coverage while at Kaiser. If you leave, the coverage terminates. Kaiser or their insurance company can discontinue the plan or modify it without your consent. Individual policies cannot be canceled/modified except by you.
5. Claims are governed by ERISA.
The claims process is more demanding and you have less legal recourse should a claim be denied. See this page for more info.
We hope this helps you make an informed decision. If you considering Kaiser disability insurance, reply to this email and we will answer any questions about their group disability insurance versus your private options.