Insider's Insurance Guide

Posts Tagged ‘Long’

Life Insurance – Short And Long Term Insurance Plans

Just the other day I was wondering over the stories of my fathers’ first job, promotion and his retirement. With the basic salary of Rs300/- in the year 1970, he was a happy young boy. Subsequently he got promoted, with a increase in his salary to Rs 1000/-. He retired with a salary of Rs25, 000/-, three kids and wife. He retired peacefully, meeting all his obligations, with his PF and NSS schemes. But, time has changed. Insecurity and uncertainly has crept in like a serpent in the house. With this we need more assurance – of a peaceful and secured lifes.

With the bubble of insurance booming all around, things are much better. Investing in a life insurance plan, be it a term plan or a long term plan, gives assurance of a secured life. A life where one can lead a peaceful life, meeting the small and necessary needs. Insurance plans are the guarantee of a happy life – pre or post retirement.

Be it a short term insurance plan or a long term plan, the idea is to secure the future. By working on his pros and cons, budget for the present and future, one can ensure a life filled with happiness, away from unnecessary anxiety, by taking a life insurance policy.

One can project something like this – what is the best policy when he reaches the age of 30; which one to take when his child reaches the age of one; which policy to take when he reaches the age of 40…. (Taking Insurance Policy in the early years is best as the premium is low in younger years. It grows as with age.)

Taking Insurance Policy is generally decided by three factors – age, income and requirements. All the three reciprocate each other, as they are deciding factors of the premium one can pay, the kind of insurance policy one should take, the riders or add – ons one should go for and the number of years or term one should go for.

If you are the one who has not taken a life insurance policy yet and has a family to take care of, then you must go for an insurance policy as early as possible. Don’t delay much, for earlier the policy taken, less will be the premium and easy will be the responsibilities…

 

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Long Term Disability Insurance – An Inexpensive Hedge Against the Unknown

The thought of not being able to work for a year or longer is completely foreign to most of us.  Yet, statistics bear out that 20 percent of U.S. workers will experience that exact situation.

How would you pay the mortgage and other bills for a year or more?

How would you maintain your current standard of living?

A long term disability insurance policy generally pays benefits up to 2 years, 5 years, until age 65, or for life.   This means you can receive up to 70 percent of your regular earnings while you can’t work to pay your mortgage and other daily living expenses.

Why Pay For Insurance When The Government Will Cover Me?

Disabled U.S.workers can qualify for federal disability benefits from the Social Security Administration, but keep in mind:

The first payment from the government will not be received until at least 6 months after the disability has occurred. Almost 70 percent of first-time Social Security disability claims are denied. Most claims that are ultimately approved only happen after the claimant has retained a disability lawyer to assist.

Can you really afford to go up against this bureaucracy when you’re unable to work and the bills are stacking up?  Do you really want to have to hire an attorney, go to court, etc., further reducing your take home cash flow?

With an individual long term care insurance policy, you can avoid the federal run around and start receiving benefits after your elimination period.

What Could Cause Me to Be Out Of Work For A Year Or More?

The leading causes of long term disability (2007, Unum) are as follows:
•Cancer – 12.2%
•Pregnancy complications – 12.1 %
•Back injuries – 11%

The U.S. Census Bureau estimates that American workers have a one in five chance of becoming disabled and the average long-term disability (LTD) absence from work lasts 2.5 years, according to the Council for Disability Awareness.  That’s a lot of bills to pay without a source of income.

Policy Options

Long term disability insurance policies can be setup to meet your specific needs.  Options include:

Elimination Period:This is the period of time after your disability before benefits are paid.  Typical periods include 60, 90, and 180 days.  The shorter the period, the higher the premium. Benefit Period:This defines how long benefits will be paid.  The longer the payout, the higher the premium. Residual Coverage:This identifies how you will be covered if partially disabled (i.e., when the doctor has deemed you can work part-time).  Without this option, all benefits are stopped at the point your doctor says you can work in any capacity.
Renewability:This covers how and when the insurance company can change your policy.  Options include: Non-Cancellable/Guaranteed Renewable:  The insurance company cannot legally change your premium or benefit without your consent, regardless of whether your income falls. oGuaranteed Renewable:The insurance company has the right to change your premium at any time with state approval. Exclusions:These are stated circumstances under which benefits will be limited or not paid at all.  Pre-existing conditions are often excluded for the first two years of a policy.

Playing the Odds With Your Income?

Given that 20% of all U.S workers will suffer a disability lasting a year or more and that half of all bankruptcies are disability-related, the cost of a long term disability insurance policy quickly pales in comparison to the cost of not having one.

Long Term Disability Insurance: Be Heard

The stress associated with the modern life can manifest itself in various ways. One of the biggest causality of the modern day stress is the mental and physical well being of the individual which can lead to disability. Taking out a long term disability insurance is a good idea to safeguard oneself but it is equally important to know the exact details of the contract to save hassles in the future.

Disability is generally classified into two types viz short term disability and long term disability. The short term disability generally entails a condition with an uncertain prognosis or an undefined date for return to work. The long term disability, on the other hand, is more serious in nature and can have an impact on an individual’s earning capacity.

Depression or any other psychiatric disorder which hampers the working ability of an individual is a long term disability and is covered under the long term disability insurance. However, problems arise when the insurance company refuses to give due credit to the contract and refuses to pay the claim on various grounds.

One of the biggest reasons for contention is the insurance company’s claim that all the details were not disclosed during the time of entering into contract. The insurance company may also claim that a particular disease does not quantify under the stipulated contract. These intricacies can be very complicated and require the acumen of a trained lawyer.

A disability insurance litigation basically involves taking the fight back to the insurance company and proving the merits of the case. It is important to substantiate the medical condition with proper certificates from a medical practitioner. Also, there is a need to understand the exclusion clause properly and prove the ingenuity of the case.

A disability insurance claim lawyer is adept to understand the fine prints of the insurance policy and take the case forward. The disability litigation lawyer is trained to understand the language of the insurance companies and place the ball in their court. All the aspects of the litigation like documentation form the physician is covered by the lawyer.

A litigation lawyer can provide some very useful insights into long term disability insurance case. The law firms also provide an option to charge the money only after the litigation has been concluded. The lawyers may also emphasize on reaching an out of court settlement and get the due claim for the disabled person.

David Share Associates provides long term disability insurance advice. The website .sharedisability.com provides complete information about the company.

Why Would I Need a Long Term Care Insurance When I Have My Disability Insurance?

Quite often, people have a tendency to get confused about this subject. When people are asked how they plan to protect their assets and income in case of a long term care situation, almost every time answer is the same; “Well I have a disability insurance…”

Confusion starts with the definition of Disability Insurance where people get Short Term Disability and Long Term Disability confused with Long Term Care. There is a distinct difference between the two insurance plans and in order to have a better understanding of the difference, we need to know what each insurance vehicle offers as protection.

We’ll start explaining what Disability Insurance offers without going into too much detail as in Long Term or Short Term Disability: In a nut shell, Disability insurance provides a portion of your income for a certain period of time when you are disabled while you are employed. What this means is when you get disabled, you may receive up to 40, 60 or maybe 80 percent of your total income for a specific period of time. Further more, this also means two things:

(1) You are not going to receive any supplemental income for the cost of your care through your disability insurance; all you are going to receive is the portion of your income.

(2) You will receive a portion of your income for a specific period of time. When this period is over, your income from your disability insurance will seize.

So you can actually see that the benefits of Disability Insurance are very specific and limited. Nevertheless this simply doesn’t mean that Disability Insurance is not a valuable protection plan. When you learn the benefits of Long Term Care Insurance, you should be able to understand that the two protection plans take separate and important precedence in our lives.

Before we get into the benefits of Long Term Care Insurance, we need to clear out one misconception about this insurance plan; Long Term Care Insurance is not necessarily some insurance plan that you purchase to get care when you are older, and it is not particularly a nursing home care either. People get into Long Term Care situation in younger ages too and Long Term Care Insurance is a great protection plan that provides many valuable benefits.

Among many of these benefits, of course the most important one is to provide funds for your care when you are unable to do some of your daily activities. This is actually the main difference between this plan and the Disability Insurance; Long Term Care Insurance does not provide income or any portion of your income, it actually pays for the cost of your care up to certain amount which is determined within your policy. In other words, Disability Insurance provides you a portion of your income where Long Term Care Insurance actually pays for the cost of your care. Now you can see the importance and the complimentary nature of the two insurance plans; while you are receiving a portion of your income through your Disability Insurance – which is always less than your regular income, you will also have your Long Term Care Insurance paying for the cost of the care that you are receiving.

Considering the present high cost of care, and having to pay for it with a limited income may become an enormous financial burden. This is one of the most important reasons why these two insurance plans exist. It is also as important and highly recommended that you should consult an insurance professional who can coordinate and design these policies according to your specific personal needs for your full protection.

Remember, you must protect the most important asset in your life: Your Earning Power!

Information to help you decide if you need disability insurance coverage.
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Cheap Long Term Disability Insurance Quote

The goal of insurance companies is to provide you with the long term disability insurance quote easily.

You can shop for disability insurance quotes online which makes it easier for you. All you have to do is follow the procedures. These are.

Request a long term disability insurance quote from the official site. You will then receive an email with the link of the quote that the insurance company recommends for you. You can view this and check whether this long term disability insurance quote is appropriate for your lifestyle and your budget. You can also look into other insurance companies and see if they offer the same plan for a lower cost on your end. If you’ve finally made your decision on which long term disability insurance quote to go for, you can fill in the application form which is also available online. If you need more convincing, there are professional insurance agents that can assist you with your concern. You can talk to them by contacting the numbers that is posted on the site.

When you sign up for a long term disability insurance quote, you naturally have expectations. You need to be updated on the processing of your benefits.

Sometimes this can last several weeks. However if you shopped for your long term disability insurance quote online, you will be constantly updated on what is going on with the processing of your benefits.

Also, the staff of the insurance company that is providing you with your long term disability insurance quote can be relied on for 24 hours a day and 7 days a week just in case you have questions on what you can gain (and lose) in this policy that you signed up for.

But you have to remember that insurance companies are competing against each other in providing long term disability insurance quote to those who need it.

The information that you provide them can determine the rate of the disability insurance that they will provide you. Normally disability insurance cost is 1 to 3 percent of what you earn in a year. This can also be determined by your choice of policy.

If you choose for long term disability insurance, this will take you a longer time to pay off what you are borrowing. If you choose to get it done fast, you can opt for the short term disability insurance.

Before you sign up for anything, make sure that you understand the policies and the terms of the plan you choose.

You can also calculate and see whether you are getting your money’s worth for this insurance.

I live in the Chicago suburbs and would like to get an idea of what the premiums are for long term care insurance.

Other than my employer…what’s a good company to buy from?

Thanks so much!!!!

Should I get a policy with higher daily benefits, higher life time maximum benifits, nursing home only or nursing home and other types of care? It is all so complicated and I just need some simple answers as how to get the most for my money.
Thanks.

I am 44 and my husband is 47. My parents did not buy this until they were in their late 50s.

I have no clue how the insurance industry works, so I feel like I’m in a bad position to bargain shop. I tend not to trust slick advertising. Do I need to read a book? Are there trust-worthy, friendly, smart professionals who can meet and talk with you about this? What are they even called??