I bet with almost certainty most people can agree their home, contents and car are covered by insurance. It might be a question if the deductible is $500 or $1,000, but it would be easy to find. What about the ability to pay for all the things? Can YOU say your ability to earn an income is covered?
Disability insurance, whether short term, long term or a combination, provided by an employer or privately purchased is insurance protecting an income stream when an illness or injury occur. A waiting period is a number of days before the coverage begins paying benefit. On Short Term Disability (STD), a typical scenario is zero days for an accident and 7 days for an illness then the policy begins paying. Benefits often last 13 weeks (or 90 days). Long Term Disability(LTD) usually begin 90 days after an illness or injury starts and can provide income from 2 years to ‘To Age 65’.
If offered through an employer, it is most beneficial if employees pay the premium with AFTER TAX dollars. This means the employee will pay premium after tax is figured on gross pay. This allows if the employee needs to use the benefits they will TAX FREE, which is the time when every dollar counts.
STD isn’t available for individual purchase only through employer sponsored or a supplemental benefit like AFLAC. LTD can be purchased on an individual basis or through an employer and if both are owned may coordinate or both pay separately depending on how purchased. Typically between STD and LTD coordination occurs and they will never cover 100% of income as it is not deemed income replacement, but to assist during a recovery.
Employers, if you want to discuss the aspects of offering more comprehensive benefit design adding disability and other benefits, or you are an individual wanting to discuss more particulars of disability coverage, give me a call.
A little more about us:
The Business Warrior group has some of the industry’s top experts in all the areas your business needs to be successful. Amongst the contributors is Janis VanAhn, owner of Health Insurance Advisor, LLC. For 19 years Janis has worked in and around the health insurance industry initially providing service to agents and employers related to employee benefits, individual healthcare and Medicare, while more recently becoming appointed as an individual agent with various quality carriers to provide this service to individuals through her own business.
Four years ago Janis was ‘blessed’ with being let go from her job at an insurance ageny. Staying within insurance was her path…but in what capacity. 2010 was the year Janis began her career as an independent insurance agent specializing in health insurance. Finding quality, cost-effective healthcare for individuals and families under age 65 as well as working with those who are Medicare eligible truly was her passion. She has made this a true specialty and positioned herself as someone to work with whether it is a financial professional or property & casualty agent with a client that needs assistance, to a group of seniors turning 65 and they keep receiving Medicare information and are confused about what to do.
Janis enjoys the one on one contact with clients as well as looking forward to speaking to groups about healthcare. Her excitement for this industry is what drives her to stay in tune with Healthcare Reform and what is currently happening and what will happen with coverage from now to past 2014.
‘Educating individual and Medicare consumers to make informed choices’ is her mission because if people are educated and understand, they will make informed choices that they are comfortable with.