[ladyjane]

However, while she could have been put on disability .. after a certain period of time - the employee sponsored life insurance would have gone bye-bye.

Not true. Many employers continue to provide the life insurance after the individual goes out on disability. If they don't provide it the former employee can frequently continue it.

[CyberAnt]

Okay - that's good to know.

I have another question - do you know if this is a national insurance regulation - or a state insurance regulation ??