Insurance Blog

Should You Buy Disability Insurance Riders?

When you have decided to get a disability insurance plan, you will then need to decide what riders or extras you want. Some of the riders will cost you, and cost you big, but they can be life savers. For example, ‘own occupation' coverage will cover you if you cannot perform the exact same job as you did before you became disabled. This can cost you an extra 40 percent on your plan but if you can afford it you may want it.

 

Other important riders to consider if you can afford them are things such as retirement age, cost of living adjustment, and future purchase option. These break down as follows:

• Retirement Age: Retaining your coverage until your retirement age will likely cost you up to an extra 15 percent.
  
  
• Cost of Living Adjustment: This may add 20 percent to the policy but will cover you when inflation makes your cost of living go up.
  
  
• Future Purchase Option: This is a big one and will likely run you an additional 25 percent but will allow you to increase your coverage at a later date if you are making more money with the best part being you will not be required to take another physical.

You should also be sure to check that your plan will not be able to be canceled at any time from the provider and that your renewal will renew at the same rate provided you pay your premiums on time. This type of coverage is usually automatic with most plans but it is certainly worth checking out just in case.

There are now many types of insurance that you can just go online to obtain. However, when it comes to long-term disability insurance it is probably in your best interest to sit down with a professional and thoroughly weigh out all of your options. Though the conversation may not be the most fun you can have it is most likely going to be one of the most important conversations you can have. If you end up being disabled it will end up being the absolute most import conversation of your life.

Disability Insurance can Prove More Important than Life Insurance

Many times the bread winner of a family will view life insurance as an absolute necessity especially if they have children. Life insurance is great peace of mind to have so that they know the house will be paid for and the kids will be able to go to college should the unthinkable happen. But that same bread winner will give little thought to disability insurance and with the fact being that a worker is five times more likely to become disabled rather than die, this oversight could prove costly.

There is more life insurance sold in America then there is disability insurance but if you have a family that is dependent on your income then it really is a necessity. While a death may be more emotionally devastating, a disability can prove to be just as draining, if not more so, when it comes to a family's finances.

The biggest asset that anyone has is the ability to earn money. If you get disabled and can no longer work you will still have all of your bills to pay only you will have no income to pay them with. Additionally you may have to modify your home or vehicle to suit the needs of your disability and there may be the added cost of physical therapy or training for a new job to consider. The point is you just never know what a disability will bring you in the way of additional costs.

Fortunately there are many national firms that sell disability insurance and having this type of insurance can save you from ending up in the poor house. While there is no set price a good rule of thumb is to expect to pay between one and three percent of your annual income.

Just as with many types of insurance, disability insurance can vary greatly on coverages and benefits. Here are some differences:

• Waiting Period: This is the time after a disability has occurred before benefits kick in. These can range from three months to two years depending on the provider and the price of the policy.
  
• Taxes: If your employer pays for your plan any benefits received would be fully taxable. If you pay for the plan then any benefits received would be tax-free.
  
• Benefits: Group plans though your work will cover up to 60 percent of your salary where an individual plan will cover up to 80 percent.
  
• Time: Plans can be obtained that will be good for two years, five years, age 65, and more. The longer the plan the more expensive it will be.
  
• Renewability: Some plans offer a non-cancelable and guaranteed renewal which means that you are guaranteed to be renewed at the same rate and that your policy cannot be canceled. If the policy is only non-cancelable then that means the provider cannot drop your coverage but they can increase your rates.
  
• Disability Definition: The best disability definition to get is own-occupation. This will pay you your benefits if your disability keeps you from working at the job that you held before the disability occurred and will not penalize you if you are working part time in another area unrelated to your previous job.

Many people feel that they have no need to obtain disability insurance because they think that Social Security will take care of them if they become disabled. This is a common misconception that is grossly overestimated. In fact, Social Security benefits are very hard to obtain and even if you do obtain them the benefits are typically far less than that of a good disability insurance plan. Additionally, Social Security is only given if you are expected to be disabled for the rest of your life meaning there are no short-term disability benefits available with Social Security.

While there is also Workman's Comp that is also a possibility to obtain this again will pay out far less than a good disability insurance policy. However you should look into all possible routes of income production should you become disabled.

If you do decide that you want to look into obtaining disability insurance from a private provider you will need to look over the entire policy and you should do some comparative shopping. Here are some points to consider when shopping for disability insurance:

• How is total disability defined?
• What accidents and illness does the policy cover?
• Will the policy cover partial or reoccurring disabilities?
• Will the policy cover loss of limbs, loss of sight, loss of hearing, or loss of speech?
• How long will you have to be disabled before your premiums are waived?
• Can you add coverage at a later date without having to take another physical?
• Will the policy adjust according to inflation?

Once you have satisfied your curiosity with these questions then choose the provider that you feel the most comfortable with.

Protecting your family and making sure that you can always provide them with enough money to live is of course your number one concern. Don't take chances with possibly getting a disability that can not only hinder you but your entire family as well. For your sake and that of your family, take some time, do your homework, and obtain the best disability insurance policy for your specific situation.

Disability Insurance Keeps Dentists’ Financial Future Secure

According to statistics recently released by the American Council of Life Insurers, one third of all Americans between the ages 35 and 65 will become disabled for more than 90 days. Parasol Financial & Insurance Solutions is pleased to offer help with disability insurance for dentists, which provides wage coverage specifically designed to meet the unique needs of this professional group. In addition to dentists, long-term disability insurance for physicians as well as other self-employed individuals is also available through Parasol.

For most, it’s difficult to face the possibility that an illness may sideline you at some point in your career. But unfortunately, the odds are such that many of us, dentists included, will need to be prepared for these type of circumstance.

Fortunately, long term disability insurance provides a sound safety net of coverage to fill in when a gap in wages occurs.”

Disability insurance is coverage intended to provide 45 to 60 percent of gross income to workers who lose their wages due to a debilitating injury or illness. Disability insurance intends to recoup enough of the policyholder’s wages to pay for their living expenses while they are disabled. Dentists as well as physicians and other self employed workers have special long-term disability insurance needs.

Dentists, physicians and other self-employed individuals have special considerations. Any interruption in their ability to work affects not only themselves and their family, but can have dire consequences on the lives of employees. Additionally, they also need coverage to assist them as they rebuild a thriving practice once in good health. Parasol is pleased to offer long term disability insurance solutions to meet our customer’s needs.