Disability Insurance Protection You And Compare Policy Before Purchase

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Disability Insurance Protection You And Compare Policy Before Purchase

If disability income insurance is the protection you need, shop around and compare policy features before making a purchase. Some professional insurance agents consider the ideal disability policy to be a form called ‘own occupation’ coverage. But the average life of a disability insurance policy is about 5 years. Even if you have long-term disability insurance through your employer, you may want to consider an individual policy as well. That’s why after recently meeting with his financial planner, he decided to supplement his employer’s disability coverage with an additional long-term disability insurance policy.

Sometimes, your employer pays for an individual disability insurance policy on you. You choose the length of your waiting period when you purchase your individual disability income insurance policy. During this process, the insurance company collects information about you and uses it to decide whether to issue you a disability policy. They are not affected by payments from any other individual disability insurance policy you have purchased. Neither long-term care nor long-term disability insurance terminates once it pays a benefit unless the maximum benefits of either policy are exhausted.

Unearned income you may receive includes private disability payments from an insurance policy or short-term and long-term disability coverage from your employer. The maximum normally allowed under a disability policy is 60-66% depending on the insurance carrier. If you’re not sure, an individual disability insurance policy can help. In summary, as the disability insurance market continues to deteriorate, every physician should perform a “policy check-up” to better underst and his/her policy. Business Overhead Expense (BOE) insurance is a disability policy that reimburses the practice for specific overhead expenses if a shareholder is disabled.

Variables in coverage Insurance is always complicated and disability is no exception. Benefits are taxed, however, if your employer pays for the disability insurance coverage. Long-term disability insurance usually kicks in after short-term disability coverage ends – typically after six months. Free disability insurance quotes to help consumers find insurance coverage with the lowest rates for disability insurance. As with many other insurance plans, having disability insurance coverage usually makes more financial sense than not having it.

Although it gets less attention than life insurance, experts agree that disability coverage is at least as important. Nationally recognized attorneys representing medical, dental, business and legal professionals in disability insurance coverage disputes with carriers throughout the United States. Lack of coverage could ruin your family’s lifestyle but disability insurance will ensure a continuous income stream. One coverage I don’t have is disability insurance that will cover my loss of income in case of accident or extended illness. Most school districts do not provide disability insurance coverage for their employees. individual coverageDisability insurance may be included in your benefit plan from your employer or union. While on a disability-related leave, you may continue your insurance coverage by paying premiums directly to the Lab’s Payroll Office.

For a longer illness, lasting six months or more, your employer may provide group long-term disability income insurance. Employee Benefits Disability benefits from your employer may include workers’ compensation insurance for work-related injuries. In either case, you should find out as much as you can about the group disability insurance provided by your employer. Group disability insurance can be fully paid by your employer or may require an employee contribution. When you purchase disability insurance through your employer, you may be able to have premiums deducted from your pay on a pretax basis. Plus, one overwhelming advantage of personally owned disability insurance is that it cannot be reduced or terminated if you leave your current employer.

Your employer or association-sponsored group disability insurance plan may not be all you think it is. However, be aware that benefits paid by group disability insurance policies paid for by an employer are usually taxable. If your employer is among those who have overlooked disability insurance, you may want to suggest a reallocation of benefit dollars. You’re actually less likely to get long-term disability insurance from your employer than life insurance.

Disability Insurance Online

What is Disability Insurance?
“The Social Security and Supplemental Security Income disability programs are the largest of several Federal programs that provide assistance to people with disabilities. While these two programs are different in many ways, both are administered by the Social Security Administration and only individuals who have a disability and meet medical criteria may qualify for benefits under either program.”
– Social Security web site, June 2006

The Social Security office will want to check your medical history to be sure you qualify for disability benefits. The Social Security office is one way to get disability benefits, but in most cases these benefits will not be substantial enough for families.

Disability insurance can be obtained through any number of insurance companies. In the event that you are disabled, this insurance will serve as financial protection. You will receive a percentage of your gross income from your disability insurance policy, income that will ensure your own financial safety.

You do not have to go through the Social Security Office to take out a disability insurance policy, nor to receive the benefits from that policy. The Social Security disability program is not related to any disability insurance policy that you take out.

“Individual disability insurance is truly a basic concept. It is an insurance product designed to replace anywhere from 45-60% of your gross income on a tax-free basis should a sickness or illness prevent you from earning an income in your occupation. Every disability insurance policy from every insurance company is very different, this is not a product to simply shop for the most competitive rate. To buy the cheapest disability insurance policy on the market is to throw money away. The odds of getting paid a monthly benefit under a cheap contract may be significantly lower than receiving benefits from a quality contract.”
– About Disability Insurance web site, June 2006

Types of Disability Insurance
Most people are familiar with two types of disability insurance: short-term disability, and long-term disability. Short-term disability insurance is included as part of a benefits package with many different employers, and usually provides an income in the early part of disability. Short-term disability insurance generally provides coverage for a period of several weeks, and does not exceed a two-year term.

Long-term disability, however, can last for a period of several years. These types of policies may be included as a part of employment, in a benefits package, but many purchase these disability insurance policies individually.

As far as disability insurance goes, however, there are still more policies to learn about. One type of disability insurance is the Own-Occupation Disability Insurance. The definition of this policy reads:

“The inability to perform the material and substantial duties of your regular occupation, the insurance company will consider your occupation to be the occupation you are engaged in at the time you become disabled, they will pay the claim even if you are working in some other capacity.”

Another kind of disability insurance is the Income Replacement Insurance. This is a very popular type of disability insurance, and most insurance agents are familiar with this policy. The language of this type of disability insurance reads:

“Because of sickness or injury you are unable to perform the material and substantial duties of your occupation, and are not engaged in any other occupation.”

Common in employee benefits packages, Gainful Occupation Coverage is another popular form of disability insurance. The language here is worded very carefully:

“Because of sickness or injury you are unable to perform the material and substantial duties or your occupation, or any occupation for which you are deemed reasonably qualified by education, training, or experience.”

Disability Insurance

Disability can occur at any time. While many people take their body and health for granted, serious accident or injury can happen to anyone and if you find yourself disable, for a short period or long term, how will you cope?

Disability insurance is a sub set of health insurance that will provide the holder with income should they become disabled and thus unable to continue earning a living. If this were to happen to you, do you know what you or your family would do for income?

If you are aged 40, there is a higher chance that you will be disabled, and thus unable to work for a period of 90 days or more, than of you dying before the age of 65. There are three common ways of insuring against this risk.

Employer’s Insurance

The first is to receive insurance from your employer. This is required by law in many states. It comes as a form of short or long term paid sick leave. Larger employers can have even more generous terms. For example, a common policy might offer you 60% of your salary for five years, or maybe even all the way up to retirement. While not everyone is lucky enough to work for such a company, it is worth checking with your employer to find out what your protection is and whether or not its something you wish to provide for yourself.

Long Term Disability

The second common protection against this type of risk is social security and disability benefits. This usually only covers employees whose disability lasts for a period of 12 months or more. It also must be shown to be so severe that you cannot find gainful employment. Therefore there are some gaps here that you may be more comfortable providing for with private insurance.

Individual Policies

The third method of dealing with this risk is with an individual disability insurance policy. This means taking out a private insurance policy yourself. You should shop around to make sure you get the best deal available, but at least you will have the peace of mind of knowing in what circumstances you are covered and what the terms of the policy cover.

There are some other sources of protection. Workman’s compensation policies will sometimes step in to cover you if the injury occurred at work. Auto insurance may provide coverage if the injury occurred in a car accident and the Department of Veteran’s affairs can advise you if you think the disability is related to service in the armed forces.

Long-Term Care: The Basics

stethoscope  and dollarIn the year 2000, almost 10 million people needed some form of long-term care in the United States. Of this population, 3.6 million (37%) were under age 65 and 6 million (63%) were over age 65 (Roger & Komisar, 2003). Almost 70% of people turning age 65 will need long-term care at some point in their lives. This section of the website provides basic information so you can begin to think about how you will h andle the need for long-term care. Your path will be unique to you, and based on your preferences and circumstances. Let’s look at the basic questions covered in this section:

Many people think the phrase “long-term care” refers to an insurance policy. While insurance may be part of your strategy, long-term care encompasses everything from long-term services and supports and finances, to where you will live and how you will navigate the myriad of legal, family, and social dynamics along the way.

Source: U.S. Department of Health and Human Services, “The Basics” http://longtermcare.gov website. Accessed July 2, 2014. http://longtermcare.gov/the-basics/

© Copyright 2014 intouch Business, Inc. All rights reserved. Certain names and articles used with permission of owners. Trade names mentioned herein are owned by third parties.

Costs & How To Pay

048_LongTermCareVideoJust as there are many kinds of long-term care services and supports, so is there a wide range of costs & how to pay for them varies between individuals. And while some people may qualify for a public program to help pay for these expenses, most people use a variety of options, including long-term care insurance, personal income and savings, life insurance, annuities and reverse mortgages to ensure they can pay for the care they require.  As our population ages, new financial products are offering yet more options.

Source: U.S. Department of Health and Human Services, “Costs & How To Pay” http://longtermcare.gov website. Accessed July 2, 2014. http://longtermcare.gov/savings-calculator/

© Copyright 2014 intouch Business, Inc. All rights reserved. Certain names and articles used with permission of owners. Trade names mentioned herein are owned by third parties.

LTC Savings Calculator

stethoscope  and dollarThe LTC Savings Calculator is as easy as 1, 2, 3 to plan for Long-Term Care.

Go to this page: http://longtermcare.gov/savings-calculator.

Answer the questions below (all fields are required), then submit your information using the “Calculate” button.

What is your gender?




Source: U.S. Department of Health and Human Services, “LTC Savings Calculator” http://longtermcare.gov website. Accessed July 2, 2014. http://longtermcare.gov/savings-calculator/

© Copyright 2014 intouch Business, Inc. All rights reserved. Certain names and articles used with permission of owners. Trade names mentioned herein are owned by third parties.

The Business Implications of Disability Insurance

[youtube]http://youtu.be/rWhiTbpqTGc[/youtube]Dr. Szatkowski was a prosperous, successful member of a Tarzana dental practice until he was diagnosed with amyotrophic lateral sclerosis (ALS) and was forced to retire in 2002. His story is related by his wife of 35 years, his practice partners and his insurance agent as Frank is now in a wheelchair and requires a ventilator to breath. An overhead disability practice purchased by the practice paid Frank’s third of the office expense. A disability buyout contract delivered a lump sum payment to the corporation, allowing his partners to purchase Frank’s share of the practice without personal or corporate financial stress. A personal disability insurance contract helps the family to maintain their st andard of living while caring for Frank at home with the assistance of around-the-clock care.

Why Do You Need Disability Coverage?

I read an interesting article on the Fortune magazine website: Don’t Let Illness De-rail Your Retirement. I thought I would share some of the information with you.

Everyone knows about the importance of planning for retirement, and most people underst and the importance of having life insurance in case the unthinkable happens. But many people don’t give much thought to what might happen if they are injured while still working and saving toward retirement. They can’t work, so obviously investing is on hold, and they weren’t killed, so life insurance is of very little help. It’s a difficult qu andary to be in.

According to the Society of Actuaries, one in three American workers will suffer an injury which will prevent them from working for three months or longer. If this was you, how would you replace that income? And don’t think that just because you don’t perform dangerous activities like skydiving or motorcycle riding excludes you from this statistic; according to the Consumer Federation of America and Unum, 90 percent of those who miss work do so due to health issues such as cancer and back problems.

So what can you do to keep you family from suffering what could be a catastrophic loss? Long-term disability insurance can help bridge the income gap. Most employers offer long-term disability coverage to their employees, but those policies only offer 10 percent of the covered person’s income. Purchasing a individual long-term disability policy can get you coverage of up to 70 percent of your pre-tax income. And you can opt to select “own occupation,” which will allow you to collect disability even if you could work another job. For example, if you were a airline mechanic that could work a desk job, you won’t be forced to take a job you don’t want while you recover enough to go back to the job you loved.

So contact us and let’s get you started with the coverage you need.

“He Was Careful About What He Did, With a Keen Attention to Detail”

Dale Geistler died in November 2003 at the age of 55 after a two-year battle with leukemia, leaving behind his wife, Diana, and four children. As a self-employed manufacturer’s representative, Dale, worked out of his home yet his effervescent personality made him a friend and colleague to many. Perhaps due to the care with which he approached life, he purchased a whole life insurance policy from his insurance agent, including a disability insurance plan. He began construction of his dream home: a log cabin in Juniper Hills, CA.

In November 2001, Dale was diagnosed with leukemia and his disability benefits became active. He and Diana were able to seek out specialized treatment secure in the knowledge that his income continued to support the household. Sadly, Dale died two years after his diagnosis. His attention to detail still serves Diana through income investments.


Who Needs Disability Insurance?

Any insurance policy is designed to protect the policy owner from suffering financial loss when their life is changed by a disastrous event. But what happens when life is changed because of an injury or illness  and you have to stop working in order to recover? The answer is without a disability insurance policy the injured will lose money and will not be able to pay their bills.

Disability insurance is a product that is designed to protect people from life changing disasters and financial destruction. If you end up getting hurt or sick and can’t work,  you will end up with some pretty serious medical bills and a loss of income. The person who got hurt may feel that the source of the injury should be the one who pays for their injuries. While that may be true that the responsible party should care for the expenses of the injury the truth is it will take a long time for the issue to be settled in court. While you are waiting for the settlement your bills will continue to pile up. If you had purchased a disability insurance policy, you would have an income to meet the expenses of everyday life.

The benefits of a disability policy are fairly simple.

  • The protection that it gives to the policy owner is priceless. The policy helps by keeping the st andard of living close to what it was before the injury. It pays wages that would otherwise be lost because of lost hours..
  • The money the policy pays is allowed to be used for the expenses of everyday life. It can be used to pay for food, overdue bills or any other expense that you may have.
  • Depending on the policy it can also cover rehabilitation needs of the injured.
  • The coverage amounts can continue as long as the individual is still under medical care. The coverage usually ends when the policy owner can return to work or is released by the doctor.
  • The policy pays for the medical bills of the injured. It will pay for all the scans and test that are needed to help the person get well.

This type of policy should also be purchased by anybody who works and has the potential to get injured or ill, which is, well everybody!  No one should lose their income and way of life because of an injury or serious illness.  Talk to one of our agents today.

Karl Susman, Susman Insurance Agency