Serving you through Covid-19

bbb
Serving you through Covid-19

Doomsday – oops, Black Friday!

Home

Doomsday – oops, Black Friday!

Happy Thanksgiving!!  Well, happy day AFTER Thanksgiving – or better known as Black Friday.

Black Friday.

The one day during the year where some people rush through the holiday family meal where they are supposedly giving thanks to/for all they have, only to go st and in line for hours to get a “deal” on items which, they more often purchase for themselves – and forgetting what it is that they were thankful for in the first place.

I am a fan of putting money into business, but unfortunately it is days like today that can sometimes bring out the worst in people.  Later this evening we will be hearing news reports about people getting in fights, trampled, or even worse.

It is sad, disappointing, and scary.

On another note, this is the perfect time to remind you that you need to either get insurance that you don’t already have ( and need) or update your current polices.  There is not better day than Black Friday to make sure your car is protected during gridlock traffic around the mall, your health insurance will cover an injuries that may occur or flu bugs you pick-up while st anding next to that sick lady in line, and your life insurance – well, just in case.

All jokes aside, we wish you a happy holiday weekend and season and hope you have all the insurance you need for the moments that you need it the most.

black-friday

 

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.

In the Spotlight: Disability Statistics

How secure will Social Security help you be if you are unable to work? It is emotionally difficult to prepare for the possibility that you may suffer a disability as a result of an accident or illness, but it is financially imperative to plan. Your quality of life tomorrow may depend on your efforts today.

The Latest Figures

The Social Security Administration (SSA, 2010) estimates that three in ten of today’s 20-year-olds will suffer a disability before reaching age 67.1 In another sobering statistic, the SSA reports that 69% of the private sector workforce has no long-term disability insurance.2 Essentially, seven out of ten workers would have to rely on their own personal savings, limited state-run insurance, and Social Security for replacement income in the event they could not work because of a disability. In 2009, the estimated average monthly Social Security benefit for all disabled workers was $1,006.3 Over the course of a year, that totals approximately $12,072, and for many workers and their families, that is significantly less than their annual expenses.

Men vs. Women

Throughout history, men have generally earned more than women. The SSA reports (2010) that as of the year 2007, the average salary for women was 78% of the average for men.4 This disparity affects women in two ways. Because disability benefits are based on earnings, the benefits for disabled male workers are typically higher than those of disabled female workers. However, the spousal benefit for widows is generally higher than that of widowers for the same reason—the median income of men is higher than that of women. These demographic trends are important to consider for families planning their financial security.

Supplemental Income Sources

In addition to Social Security and personal savings, there are additional options for workers and their families. Personal disability income insurance is a viable option for workers looking to manage the risk of losing their income. It offers coverage beyond workers compensation, which is state-run insurance that replaces a percentage of an employee’s income only for injuries that occur on the job or illnesses that are work-related.

Disability income insurance policies vary, but here are some key questions to ask:

  • Are you covered for both accidents and illness?
  • Does the policy define disability as the inability to perform your own job or any gainful employment?
  • How long must you wait before benefits begin?
  • How long will benefits last?
  • Does the policy offer cost-of-living adjustments?
  • Are benefits available for total and/or partial disability?
  • What percentage of income will the policy replace?

Disability income insurance policies contain, exclusions, limitations, reductions of benefits and terms for keeping them in force.  Speak with your representative for costs and complete details.

If you lack insurance against disability, or are underinsured, you are possibly exposing yourself to serious financial risk. Avoid becoming another statistic—plan your future today.

1The Social Security Administration, “Social Security Protection If You Become Disabled,”

www.ssa.gov/dibplan/index.htm.

2The Social Security Administration, “Social Security Basic Facts,” www.ssa.gov/pressoffice/basicfact.htm.

3The Social Security Administration, “2009 Social Security Changes,” www.ssa.gov/pressoffice/factsheets/colafacts2009.htm.

4The Social Security Administration, “Social Security Is Important to Women,” www.ssa.gov/pressoffice/factsheets/women.htm.

Copyright ã 2010 Liberty Publishing, Inc. All rights reserved.

L0410101948(exp0511)(All States)(DC)

This article appears courtesy of Karl Susman. Karl Susman is a representative of the New Engl and Life Insurance Company. He focuses on meeting the individual insurance and financial services needs of people on the West Coast. You can reach Karl at the office at (424) 785-4337. New Engl and Life Insurance Company, 501 Boylston Street, Boston, MA 02116

Close Bitnami banner
Bitnami