International High-Limit Temporary and Permanent Disability Insurance

disability insuranceIf you are a professional expatriate, you may have already built a financial plan, with a 401K or other retirement accounts and maybe even life insurance. However, have you taken into account what would happen if you were disabled and unable to work as a result of either illness or injury?

One in four of today’s professional expatriates will become disabled before reaching age 67, according to the U.S. Social Security Administration (Fact Sheet, February 2013). Additionally, 69% of the private sector workforce has no long-term or permanent disability insurance. A standard, employer provided disability policy may not provide sufficient benefits to meet your financial needs.

Obtaining additional disability insurance allows individuals and their families to maintain their standard of living if an injury or illness causes a significant work interruption. How much would disablement really cost? A 30-year-old, earning USD 50,000 a year, would lose USD 2.1 million in unearned wages over a 35-year period with a total disablement.   

Clements offers high-limit disability insurance for professionals to cover the loss of income in the event of disablement. There are two types of disability insurance available: Temporary and Permanent. As an added benefit, income from disability insurance is tax-free.

Policies at other carriers may restrict certain occupations or exclude high-risk locations. Clements’ International High-Limit Temporary and Permanent Disability Insurance provide the right protection for individuals around the world, ensuring that standards of living can be maintained.    

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  • Benefits & Features
  • Case Study
  • FAQ
  • Coverage Chart

Temporary and permanent options are available to maximize your protection. You can purchase both for extra security. Temporary Total Disability (TTD) is a monthly benefit paid for up to 120 consecutive months. Permanent Total Disability (PTD) is a lump sum calculated up to 5 times your annual income*.

For TTD, monthly benefits can reach USD 20,000 per month or 60% of your current monthly salary, whichever is lower with benefit periods up to 10 years. These benefits will be the total of your disability coverages combined if you have an employer sponsored policy and an individually purchased policy. Waiting periods can range from 30 days to over 2 years, providing options that will affect premiums based on your coverage needs. TTD is available if you are unable to work at your current, chosen occupation, but still would allow you to transition to a new career.

PTD provides coverage if you are unable to work at all. For PTD, a lump sum benefit is paid with a maximum or $750,000 or 5 times your annual salary, whichever is lower. You can choose a waiting period based on your coverage needs.

For the benefit of individuals working at international companies, there are no exclusions for war and terrorism. 

*Limits and restrictions apply. Subject to certain country restrictions. See policy terms and conditions. 

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Craig was 35 and working as a Construction Forman in Nigeria when he was in a disabling car accident leaving him paralyzed and made it impossible to do daily job functions. His first thought was not for himself, but what would happen to his wife and young children as he faced the prospect of losing his job and foregoing future income. 

Craig, thankfully, had the foresight to purchase disability insurance through Clements Worldwide prior to his relocation to Nigeria.  His PTD policy provided him with 5 times his annual salary and he was able to receive USD 750,000 in benefits. Without disability insurance and given his financial exposures, Craig may have faced bankruptcy. The financial benefits collected through his disability insurance provided Craig with a better future. 

What is disability insurance?

Disability insurance compensates individuals, who are no longer able to work. Temporary Total Disability insurance (TTD) is a plan that allows those insured who become disabled due to injury or illness to receive up to 60% of their income, or USD 20,000 per month up to 120 months on a tax-free basis. Permanent Total Disability (PTD) insurance provides a maximum of 5 times annual salary, or USD 750,000 whichever is lower. Permanent disability is for individuals, who will never be able to do work of any kind due to illness to accident.

Who qualifies for disability insurance? 

Anyone who works can qualify for disability insurance. Age limits apply. TTD can be purchased up to age 64. Benefit periods do decrease after age 60 with the maximum benefit period at age 63 being 12 months.

PTD is available to individuals under 62 years of age. The policy covers disabled individuals due to injury or illness.

Is there a limit to how much in disability benefits I can receive?

Generally, benefits are calculated based on gross monthly income. You can choose coverage period and waiting period based on disability insurance needs. With Temporary Total Disability insurance (TTD), you can receive up to 60% of income, or USD 20,000 per month up to 120 months on a tax-free basis. Permanent Total Disability (PTD) insurance provides a maximum of 5 times annual salary, or USD 750,000 whichever is lower.

How are benefits paid out: monthly checks, direct deposit, or vouchers?

Benefits are paid in two ways directly into the insured’s account. Typically, monthly payments are issued under a TTD policy, while PTD policies pay out a lump sum. If you have opted for both PTD and TTD benefits, PTD will be paid upon exhaustion of the TTD benefit.

Will disability benefits continue to be paid out if the insured moves or secures another job?

The insured remains eligible to receive disability benefits while working at a different job, as long as it is a different profession than the one listed in the accepted disability insurance application. Moving or a change of address does not generally affect benefits disbursements provided that bank account information is up-to-date.

When do disability benefits stop?

The benefit period is determined on the type of disability insurance selected. For TTD policies, the benefit period can last as long as 120 consecutive months. PTD benefits are paid out as a lump sum.

Can the insured’s family make use of the insured’s disability benefits?

The insured’s spouse will not continue receiving benefits after the insured’s death; therefore international life insurance is also a key component of a comprehensive protection plan.

Is there a waiting period?

Yes. This time period is referred to as the Elimination Period. The Elimination Period is defined as the time between the moment the insured sustains an eligible disability injury or illness, and the time the insured begins to receive benefits. The duration of an Elimination Period is determined by the insurance policy obtained.

For additional coverage, which other policies should be considered for a comprehensive protection plan?

Life insurance is a critical supplemental benefit, as TTD does not continue to pay out benefits in the event of death of the policy holder. Also, to ensure that benefits are not consumed by medical bills, a highly recommended additional policy coverage would be a Clements international health insurance plan

How do I file a disability claim?

Clements provides an efficient electronic claims process, please email claims@clements.com. It's not necessary to mail original invoices or receipts to our claims department. Also, multilingual claims specialist are available from 7:30 am to 5 pm M-F to assist, please call 1-800-872-0067.

Are pre-existing conditions covered?

Any condition for which a person would have or should have sought treatment for in the 30 months prior to the effective date of the policy is excluded. 

For a complete list of FAQ, please see the disability brochure

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  Permanent Total Disability Temporary Total Disability
 Benefit Payments              Lum sum of USD 750,000 max or 5 times your pre-disability earnings including benefits (whichever is lower). 

Total monthly payment of up to 60% of pre- disability earnings including benefits or USD 20,000 (whichever) is lower. Benefit up to 10 years.

 Eligibility  PTD is available to individuals under age 62 actively at work TTD is available to individuals up to age 64 actively at work
 Waiting Period  Choose between 12 months - 120 months Choose between 30 - 730 days 
Pre-existing Conditions                            If symptoms were present and/or medical advice or treatment was recommended by or received from a physician or other health care practitioner at any time during the thirty (30) month period preceding the inception date of this policy that condition is not covered. 
 War and Terrorism

Covered

 Exclusions Injury or illness as a result of drugs or alcohol, criminal acts, military service or active participation in war, nuclear, chemical, biological terrorism are all excluded. Any intentional self-inflicted injury, attempted suicide, mental disorders, or pregnancy are not covered. Riding or driving of any kind of race or endurance test or traveling in aircraft for any purpose other than transportation is excluded from coverage. There is a limited pre-existing exclusion clause.