Helpico Insurance Agency

Disability

Let’s talk about Disability Insurance or, more accurately, how long you can go without your monthly income?

This time I only will present two cases which are drops in the ocean of quotes’ variations:

Subject: Male 45, $50,000 income, long haul truck driver.

First case scenario is long haul truck driver who is driving with a leased vehicle for a company. He has occupational insurance (usually $85-$120 per month).

If he suffers injuries in case of accident or because of sickness, he should rely on his occupational insurance and something else. Why something else? His disability might be temporary, and Social Security Administration will not grant him even a dollar until he proves that he is permanently disabled. He’ll be happy to not be permanently disabled at any point of his life, but sometimes the recovery after a serious injury or sickness is slow.

What is the most economical and efficient ways to overcome a situation like this? Of course it is through an insurance policy: one simple and inexpensive policy to give him one more year of recovery time. This way, without additional stress, he can see where his health situation will end. In this additional and personally owned policy his waiting period is 12 months. During this time the occupational insurance will cover his income and medical expense. So, for an additional $60 per month, he can gain one more year of stress-free recovery.

The second illustration is for a truck driver who has his own truck. He is a so-called owner- operator. He might have his own company, and sometimes he is the only driver in it.

He doesn’t have occupational insurance, because is not treated as something similar to an employee (employees have Workers Compensation coverage through their employers, and I can’t give you a legal explanation why truck drivers don’t). So, his coverage in case of sickness and accident, and inability to work because of it, should start almost immediately. We structure a disability policy that allows us to do the minimum of a 30 day waiting period. We cover him for 2 years, as was the previews case, but his benefit can start almost immediately, because as mentioned above, he doesn’t have occupational insurance coverage. His premium will be $145 per month: almost as much, as if he had and was paying monthly for both coverages, as it is in our first case.

Your own disability insurance will pay in any case of disability, except in results of alcohol and other related substances, and intentionally inflicted injuries. It wouldn’t compensate you for medical expenses, and it might compensate for loss of life from accident or sickness. The occupational insurance has restrictions, but will pay medical expense and compensation in case of death.

In both cases drivers are securing a replacement of their income without emptying their pockets.
In both cases drivers can sleep well, because their first needs will be well covered in case of disturbing health circumstances related to their work.
In both cases drivers can reduce very significantly their expenses related to their health crisis’s financial reserves.

Keep in mind: Truckers are subject to one of most expensive rate classes. An example with someone in a clerical position will be a lot more favorable.

I told you briefly that these are just two variations from many, many more. Call me for yours?

Anna Ruseva, (773) 988-7608 or e-mail me at [email protected]

Your Ability to Earn is Your Most Valuable Asset

Disability insurance pays an insured person an income when that person is unable to work because of an accident or illness.

What are the types of disability insurance?
There are two types of disability policies: Short-Term Disability (STD) and Long-Term Disability (LTD):

Short-Term Disability policies (STD) have a waiting period of 0 to 14 days with a maximum benefit period of no longer than two years.

Long-Term Disability policies (LTD) have a waiting period of several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life.
Disability policies have two different protection features that are important to understand.

Non cancelable means the policy cannot be canceled by the insurance company, except for nonpayment of premiums. This gives you the right to renew the policy every year without an increase in the premium or a reduction in benefits.

Guaranteed renewable gives you the right to renew the policy with the same benefits and not have the policy canceled by the company. However, your insurer has the right to increase your premiums as long as it does so for all other policyholders in the same rating class as you.

In addition to the traditional disability policies, there are several options you should consider when purchasing a policy:

Additional purchase options
Your insurance company gives you the right to buy additional insurance at a later time.

Coordination of benefits
The amount of benefits you receive from your insurance company is dependent on other benefits you receive because of your disability. Your policy specifies a target amount you will receive from all the policies combined, so this policy will make up the difference not paid by other policies.

Cost of living adjustment (COLA)
The COLA increases your disability benefits over time based on the increased cost of living measured by the Consumer Price Index. You will pay a higher premium if you select the COLA.

Residual or partial disability rider
This provision allows you to return to work part-time, collect part of your salary and receive a partial disability payment if you are still partially disabled.

Return of premium
This provision requires the insurance company to refund part of your premium if no claims are made for a specific period of time declared in the policy.

Waiver of premium provision
This clause means that you do not have to pay premiums on the policy after you're disabled for 90 days.

If you are like most people, every month you're reminded of just how much depends on a regular paycheck - your car, utilities, rent or mortgage payments - to name just a few obligations.

But have you considered the fact that an illness or injury could take away your ability to work and earn an income while these expenses do not go away?

All income is created in one of two ways, either from people at work or from capital at work. Dividends, interest and appreciation are the products of capital at work. Most people need disability income insurance because they have not accumulated sufficient capital to replace their current income.

If you are like most people, your income is the foundation that supports all of your future dreams, hopes and expectations. Your ability to earn an income is truly your most valuable asset.