EZDIQuotes

Disability Insurance Protects Children’s Futures

Posted on: Wednesday, June 16th, 2010

Most of us who are parents dutifully put away money every year for our children – for their education or whatever future goals they wish to pursue. Just as we put away money for our retirement, and fund life insurance policies, IRAs and our other investments, we look upon this kind of savings plan as a way to responsibly lay the foundation for our kids and protect them as they venture out into the world for the first time.

It’s been said, however, that even the best laid plans are vulnerable to the ebb and flow of life; and our finances are just as vulnerable. We may have particular financial plans in place, but this doesn’t mean that they will be carried out that way, especially if a household earner becomes ill or injured and is unable to continue their job and earn the paycheck they have become accustomed to earning. In such cases, everything from savings accounts to college funds are vulnerable in order to help keep a family afloat.

Disability insurance plans, however, are meant to protect such financial savings by providing a monthly “wage” in place of lost salaries to those who are injured or become ill.

Disability insurance is offered through a number of different programs; everything from short term insurance to long term disability insurance that is meant to provide coverage up until the traditional age of retirement. Policyholders essentially choose the plan that will provide enough coverage to replace the amount they are currently bringing home on a monthly basis. It is essential for potential policyholders that are just determining their best policy to be sure to calculate all of their monthly expenses – everything from mortgage payments and utilities to food and clothing. By providing themselves adequate coverage through disability insurance, policyholders are not only making sure their family is protected but also protecting the savings they have worked so hard to accumulate for their children’s futures.

Disability Insurance Offers Protection for Unexpected Events

Posted on: Thursday, June 3rd, 2010

Change is inherent in life; the only thing that we can expect is the unexpected, and the best we can hope for is the grace and fortitude to weather life’s unforeseen events. Of course, there are things that we can do in order to at least offer some sense of preparedness. People buy life insurance for this reason; we surely hope that our family will not have to collect on the policy while we are young, but in the event of our untimely death we know that our loved ones will be financially protected. If only people gave as much thought to disability insurance – another important measure of protection that is just as significant to a family’s financial survival.

Unfortunately many people consider their death far more often than they consider the possibility of their incapacitation. The fact is, however, that injuries that have a long term impact on the victim’s life are more likely than their death at a young age. So it stands to reason, that people of any age who wish to protect their families from the loss of their income should explore the possibility of a long term disability policy.

Disability insurance provides income for those who are unable to work due to injury. When you consider your family’s financial stability – or lack thereof – if the primary earner is unable to return to their current employment – either temporarily or permanently – it is easy to understand the importance of a well thought out disability income insurance plan.

There are a variety of long term disability insurance plans available for those who wish to provide protection for their family in the event of an injury and subsequent loss of income. The amount of disability insurance coverage chosen depends on the policyholder’s current income and how much they would need to live as they have been on a monthly basis. A reputable disability insurance professional can walk a prospective policyholder through the entire process of developing an adequate plan.

When Group Disability Insurance Plans Are Not Enough

Posted on: Thursday, June 3rd, 2010

Many household earners have considered a disability insurance plan in terms of protecting their family in the event of their own injury and subsequent loss of income. In fact, there are some disability insurance plans that are offered through a person’s employment that provide at least some disability insurance coverage. In such a situation, policyholders may believe that this coverage is more than enough to see their family through a financial crisis should their primary income disappear. But when you look more closely at the details of such a policy, many are likely to find that most of these group policies fall far short of being able to fully protect their family.

Many group disability insurance plans offer disability coverage for their employees only if their injuries occur at work. In other cases, the disability insurance provided is significantly limited – offering only short term coverage or coverage amounts that are inadequate for sustaining their household. For this reason, many consumers find that they must supplement their disability insurance coverage with an individual plan.

Supplemental disability insurance plans will cover those policyholders that are injured under any circumstances and in any location – even if it’s not in the workplace. Further, individual disability insurance plans are able to provide comprehensive coverage for policyholders; the amount of the policy is determined by the policyholder and is based on their current monthly income and what is financially adequate to meet all financial obligations on a monthly basis should their income be disrupted.

Comprehensive disability insurance plans will protect the household in the event of a catastrophic injury that prevents primary – or even secondary – earners from reentering the work world. By working with a professional disability insurance plan provider who understands the industry and the amount of coverage that will be sufficient and affordable, prospective policyholders can purchase a policy with peace of mind.

Determining the Amount of Adequate Disability Insurance

Posted on: Tuesday, March 16th, 2010

Just as we go through the steps to ensure that we have adequate life insurance coverage should something happen to us, so must we go through similar steps to ensure that we have enough disability insurance coverage should we become injured or ill. While many companies offer disability insurance plans to their employees, they are often far from substantial in providing adequate coverage. Therefore, it is often necessary to purchase additional individual disability insurance to protect the policyholder’s family in the event of the unexpected.

Essentially, if the policyholder is injured or becomes ill and is no longer able to return to work, the disability income insurance they have purchased will take the place of missed wages. The most significant part of purchasing a policy, therefore, is determining how much disability insurance is enough to sustain a family – either temporarily or until the age of retirement – if a paycheck is suddenly gone.

Therefore, potential policyholders should consider:

* The amount they pay out on a monthly basis in terms of mortgage payments, utilities, food, fuel, debt, and any other household expenses. This is an absolutely critical part of the process of applying for disability insurance. Consumers must be relentless in determining their monthly expenses, leaving no stone unturned, and being honest about what they spend. Putting everything out on the table will allow them to make more educated decisions.

* Their age of retirement. The average age of retirement is sixty-five but this certainly doesn’t hold true for everyone. Long term disability insurance policies are generally meant to cover policyholders up until the age of their retirement when retirement investments, savings, and pensions take over. Knowing the reality of their situation makes for better planning.

* Their budget. While we would all certainly love to have all the insurance we want, sometimes it’s unaffordable. Working with a reputable disability insurance agent will allow applicants to balance their insurance needs with their financial guidelines.

The Pros and Cons of Company Provided Disability Insurance Plans

Posted on: Tuesday, March 9th, 2010

When most people think of disability insurance they think of the disability plans that they are offered through their jobs. While this type of disability insurance is certainly beneficial in that it provides at least some semblance of protection should the employee become ill or injured, these disability insurance plans often have significant shortcomings that policyholders should examine closely. Such is the reason that so many people – even with company disability insurance plans in place – choose to protect themselves in a more comprehensive manner through individual disability insurance.

With company disability insurance plans employees are afforded the benefit of affordability. In some cases, employees are even given a small amount of disability income insurance at no charge. The problem is that the company may only offer disability insurance plans wherein the definition of disability is vague and will often only provide coverage if the policyholder is unable to complete any occupation following their illness or injury.

The reason that many people seek out individual disability insurance is because they can write the policy so that it makes sense for their own personal situation. Individual disability income insurance policies are offered through a variety of programs that will suit the policyholder in terms of providing coverage for longer periods of time and with broader definitions of disability. There are even those disability insurance policies that will continue to cover the policyholder if they are unable to continue their regular job due to illness or injury but are able to earn a wage doing another kind of job in another industry.

Disability insurance is meant to protect families in the case of a loss of wages due to injury or illness. But without examining the details of the disability insurance policy policyholders are left vulnerable to possible stipulations that will affect the policy payment, the length of time they are covered, and the conditions under which they are covered.