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Archive for the ‘Disability Insurance’ Category

With a one in five chance of becoming disabled and unable to work at some point in your life, according to the U.S. Census Bureau, perhaps the first question you should be asking is, “Do I have disability insurance”? Many employees are under the belief that their employers have provided coverage for them if an accident were to occur. While workman’s compensation will cover a job related injury, most accidents occur while you are not at work. By reviewing your current insurance, you can determine whether or not you have adequate coverage. Even employees under union contracts may be surprised at how little coverage they have for short or long term disability.

If group disability insurance is not provided through an employer, or if the coverage is not adequate, an individual disability insurance policy should be considered. This type of insurance can be purchased from the same agents who sell life insurance. Short-term disability insurance normally provides up to 60-70% of your pre-disability salary and generally pays benefits for up to three to six months. Most policies have a maximum monthly benefit and a limit to the amount of time benefits can be received.

Depending on whether you suffer an injury or become ill determines when benefits will start being paid. Benefits may be paid right away in the event of an injury. However, if you become ill, it may take longer for benefits to start because most policies have a longer waiting period for sickness claims.

What happens when the six month short-term disability coverage runs out? Many people are under the assumption that if they cannot work, that Social Security will take over. Social Security benefits are limited to disabilities that are expected to last a year or end in death. Also with Social Security, one cannot engage in any type of work in order to qualify. With a 72% denial rate, can making the assumption of getting coverage through Social Security be worth the risk?

What about long-term disability? Long-term disability picks up where the short-term disability left off. This type of policy also pays a percentage of your salary (usually 50-60%) depending on the policy. Long-term disability benefits can be for as little as one or two years and as great as to age 65.

Understanding disability terminology goes a long way in helping understand the coverages available. Terms such as: elimination period, non-cancellable, and guaranteed renewable policies are just a few of the features to learn about in order to decide the right coverage needed. Going over these options and other features with a qualified insurance agent can make all the difference. These options and features do vary by state and by occupation class.

The odds are that your are more likely to become disabled than to die prematurely. Statistics say that people do not believe that they will become disabled, but the facts are that one is 16 times more likely to go through a mortgage foreclosure due to a disability rather than death. Employers will not continue to pay salaries if an employee cannot work.

So, are you insurance poor? Do you think you don’t need disability insurance? About 90% of all disabling injuries happen outside of work. Do you have the 2 1/2 years of recommended emergency savings to cover your bills that will keep coming even if your paycheck does not?

Suffering through financial hardships can be devastating not only for the injured by hindering recovery time, but for the loved ones as well. Being prepared and knowing that you have the coverage necessary will lead to a stronger sense of financial peace and well being. Many people believe they cannot afford disability insurance. Perhaps it would be better said, “Can you afford not to?”

Educate yourself by talking to an agent that can help determine what your needs are. Do not assume you have coverage and then find out when it is too late that you do not. Do not wait until it is too late to find out that you are insurance poor.

The burning question “Should Stay at Home Moms Have Disability Insurance?” is an extremely difficult question to answer. There are different provisions for different moms with varying backgrounds. When was the last time you worked? What coverage did you have? Did you run your own business?

Unfortunately in most situations, disability insurance is designed to replace an income in the result of an injury at, or outside of the workplace. It is also dependent on how and where the disability originated as well as previous employment status. For a stay at home mom with no prior income, disability insurance is a very improbably option. Disability insurance is generally a percentage of your income, therefore moms not having an income can not qualify. In some cases the documentation of your salary is required for application of insurance. If a mom has her own business that generates income, it is a possibility to receive disability as some policies are designed to replace an income in the event of injury or illness.

So, should stay at home moms have disability insurance? Not likely. Luckily there are several alternative options to disability insurance. Long Term Care Insurance is an option for moms who take care of their families. If a mom can not perform at least 2 “Activities of Daily Living (ADL’s)” which are personal hygiene and grooming, dressing and undressing, feeding oneself, functional transfers such as getting out of bed, voluntarily controlling urinary and fecal discharge, elimination, and walking or using a wheelchair, then she could possibly qualify for a policy. Individuals suffering from chronic illness, disabling conditions or cognitive impairment are the common recipients of Long Term Care Insurance. The services covered are normally required for extended periods of time. The focal point of this type of insurance is to assist individuals with regular ADL’s.

Another option is working from home. Sometimes this can be a very appealing option to individuals whether they are disabled or not. Believe it or not, work at home opportunities for moms are becoming more and more prominent as corporations and online educational programs are perfecting systems so moms staying at home can utilize their skills while taking care of their families and earn a massive income in the meantime. If your still asking the question should stay at home mom have disability insurance? You should focus your time and energy on other possibilities that will be of greater help to you as trying to obtain disability insurance can be a desolate road.

Purchasing Disability insurance is an important and responsible thing for any professional to do. Depending on your occupation and interest, there are many ways that a person can obtain Disability insurance: through a group plan at work, individually or even through a professional association. Although many associations offer individual policies, many times they do not offer as quality of a product as is available on the individual market. For Veterinarians who are interested in obtaining Disability insurance, you should be sure to review all options carefully as each can differ greatly.

Although Disability insurance is important for any professional to have, medical professionals are some of the biggest proponents of having it – possibly because physicians and nurses witness debilitating injuries and illnesses every day. Most medical professionals are not only proponents of Disability income but more importantly, understand the value of protecting their specific occupation and using a quality Disability contract to do it.

Sadly, many Veterinarians who are responsible enough to obtain Disability Income insurance just do not give it the due diligence it deserves. Many Veterinarians simply decide to purchase income protection from the American Veterinary Medical Association (AVMA), because it is easy, priced affordably and endorsed by the AVMA, which to some people may imply a high level of quality. The truth is however, that the Disability insurance policy offered by the AVMA is not as good as many Veterinarians would expect.

There are three primary concerns that exist with the AVMA coverage, which can very easily be addressed by individual Disability insurance from most of the major insurance carriers offering Disability Income. The first concern is related to the renewability of these policies. With individual Disability insurance, Veterinarians can purchase Non-cancelable and Guaranteed renewable policies, which guarantees that the pricing and provisions of the contract cannot be changed by the insurance company. With the AVMA options, Veterinarians are forced to purchase a Guaranteed renewable policy only, which means that premiums are susceptible to change.

The second concern relates to the definition of total disability, which may be one of the most important provisions of a Disability insurance policy. When selecting the AVMA option, Veterinarians are provided the option of selecting a Modified Own Occupation definition of disability or paying an additional premium for a definition that closely resembles the True Own Occupation definition of disability. In either situation, Veterinarians that become disabled and unable to do their work will have limited options. With individual Disability insurance purchased separately however, Veterinarians have the option of purchasing a True Own Occupation definition of disability, which truly protects a Veterinarian’s medical specialty.

The third and greatest concern is regarding the Residual Disability benefit of a Disability policy, which provides benefits for partial Disability claims. With most individual Disability policies available from the major carriers, a person does not have to suffer a Total disability for any specific period of time in order to qualify for residual benefits. With most insurance carriers, the only requirement is that a loss of income greater than 15-25% (depending on the carrier) is incurred as a result of debilitating injury or illness. With the AVMA residual Disability benefits, Veterinarians must first experience a total disability for at least 30 days prior to qualifying for any residual benefits. As you can probably imagine, it is significantly more likely to experience a partial disability than total disability – hence the reason why this benefit is so important. Additionally, the way that benefits are paid will vary between the AVMA policy and those available from certain insurance carriers. The differences are substantial and this should be a very important factor to consider for any Veterinarian considering purchasing Disability insurance.

Purchasing Disability insurance is not something that should be taken lightly. Considering that you are likely to pay into this policy for the better part of your working years, shouldn’t it be something that is worth your while and money? As a Veterinarian, you should be concerned with protecting your medical specialty and your ability to earn an income. Review your options carefully and, although it may be difficult, put pricing aside while researching your options. Disability insurance is not a type of coverage that should be based on pricing alone. Prior to making any decisions, you should try to remain unbiased throughout reviewing the contractual differences within your options. To learn more and request information on the options available for Veterinarians, visit Veterinarian Disability Insurance.