Is Disability Insurance Necessary for the Average Worker?

Out of all the various kinds of insurance that a person can obtain, not many people consider purchasing disability insurance. This is most likely due to the fact that most employers provide some sort of disability coverage or worker’s compensation. Because of this, most employees feel that they will be sufficiently covered in case something ever happens to them. Other people may shy away from buying disability insurance because of the high cost. However, this type of insurance can play an important part in maintaining stability in your family in the event that you become disabled and are not able to work for an extended period of time.

Do Employees Need Disability Insurance?

In 20ll, the Social Security Administration published a statistic stating that the average employee over the age of 20 has a 30 percent chance of becoming disabled before they reach retirement age. Although most employers offer some form of disability coverage, the payout may be delayed for months and the insurance provider may give you the runaround in the hopes that you will give up on your claim.

There is also the option for workers to apply for disability benefits via Social Security. However, the average monthly benefit payment is around $1200. This may not be enough to cover the living expenses of an entire family in the event the primary financial provider becomes disabled.

How Much Does Disability Insurance Cost?

Most people who have inquired about buying disability insurance find that the cost is surprisingly high. According to the Employee Benefit Research Institute, it costs about $16.30 for $1000 worth of disability coverage under a group policy. Workers who choose to purchase disability insurance on their own will pay about $18.60 for $1000 worth of coverage and are subjected to a 90 day waiting period.

This may not sound like much at first, but when you stop to consider that life insurance only costs around 22 cents for $1000 worth of coverage. The reason for this high cost is because not many people are purchasing disability insurance and because insurance companies face the risk of having to make large long-term payments if you file a successful claim.

It may seem costly, but if you think of it as income protection insurance to ensure that you can provide for your family, in the unfortunate circumstance that you need it, the cost will feel well worth it.

Calculating the Odds

When it comes to deciding whether or not disability insurance, it is important to look at your own situation and determine how likely you are to become disabled. Factors such as job type, age and pre-existing health conditions should also be included in your deliberation. If you are the sole financial provider for your family, think about how your potential disability would affect your lives.

Buying funeral insurance

Insurance related to your funeral and the final expenses of your life is different from other types of insurance. Other forms of insurance are to help financially if a future event occurs. This is true even for life insurance. Term life insurance is for specific period of time, and if death has not occurred, the policy expires. With funeral insurance, you are paying for an event that will occur. In fact, this type of insurance has some attributes of a prepayment.

There are many advantages to this type of insurance. If you die before you have accumulated enough money to pay for everything, it is covered by the policy. However, if you were to make your payments long enough, eventually you will have paid for everything. Another advantage is that your loved ones will not have to worry about the specifics of a funeral. You can plan everything ahead of time. Surviving loved ones are too bereaved to make many of the decisions necessary after your death, but by having everything planned ahead of time, you can provide relief to them at this time. You also can get what you want and not what others will choose for you.

You can decide on the method of burial as well as where you want to be buried. This includes burial or an interment in a mausoleum. You can also choose to be cremated. In some cases, you can lock in certain prices for part or all of your funeral expenses. This is important because the cost of funerals keeps climbing and having funeral insurance is the best way to keep the cost down.

There are some people who choose to buy a small life insurance policy instead of funeral insurance, and to be certain, this is a better idea than doing nothing. However, life insurance will only pay up to the amount of the policy, and this may not be enough. Even if it were enough, there is still the issue burdening you family with all of the details of the funeral, and they may not know what your wishes are.

There are different types of funeral insurance to consider. Some are available from national insurance carriers that have contracts with a local funeral business near your home while other funeral companies may sell insurance directly from their local funeral business.

Understanding Supplemental Medicare Insurance

People over the age of 65 qualify for Medicare Parts A and B. However, this often do not cover all the medical costs that the individual needs. Because of this, a lot of people buy supplemental insurance or Medigap. In order to know what is the best option for you, you need to learn how this options work and what they mean to your specific situation.

Private insurance companies are the ones who will sell you Medigap policies. Medigap works with both parts of Medicare to pay for what Medicare does not cover. Some of these costs include deductibles and co-insurance payments. There are many different kinds of Medigap policies, so you should understand how each one works before you choose a policy for yourself.  One of the better ways is to work with an independent agent.  These insurance agents work with you to look at all the medicare choices you have.

When you incur medical expenses, Medicare is the insurance that takes care of paying the cost first. What is not covered at the end is covered by your Medigap policy. This is how Medigap acts as a supplement to your main Medicare insurance. If Medigap does not pay for the leftover expenses, you will need to pay for it out of your own pockets. So, when you think about what other medical servics you may require in the future as you age, getting a Medigap policy may be a good choice for you.

Keep in mind that Medigap policies usually do not cover dental costs or vision costs. However, there are other insurance options available for such expenses. Consult with your insurance company to find out what your alternatives are.

To get Medigap, you first have to qualify for Medicare parts A and B. The supplemental insurance must be associated with Medicare as a supplement to it. One Medigap policy only covers one person, so your spouse will need to get a separate one for him or herself.

Compare your options and understand what you are purchasing before you sign anything. Get advice from your insurance representative if you have any questions.

Key Facts About Life Insurance Coverage

Life insurance represents a truly effective method of safeguarding your family’s finances in the event you are no longer around to provide for them. There are life insurance policies to suit just about every circumstance, budget and priority. However, this article will focus on two broad distinctions within the topic of life insurance.

One of the main categories of life insurance is the term life policy. Term policies are, in essence, policies that are valid for a determined period of time with a set ending point. The coverage is in place for the duration of the specified time and no longer than that.

Term life insurance policies are favored by many individuals because they come at a lower price tag than other types of insurance and generally provide fairly large coverage amounts. However, this sort of insurance does not leave policyholders with any type of asset once the term expires. Thus, premium payments made over the course of the term do not build lasting value.

These are frequently thought of as the best life insurance policies for smokers and other high risk lifestyles.  This is because term life insurance policies are the most inexpensive of any type of life insurance.  This means that, even though smokers will pay more than a non-smoker, they will still pay much less than with other forms of life insurance.

The other broad category of life insurance is that known as the whole life policy. The coverage principles are the same as with term life policies, but whole life policies actually build cash value that can be leveraged once the policy reaches its stated maturity date.

Some people steer clear of whole life policies simply because they are considerably more expensive than term policies, and they tend to provide less coverage as well. But, other buyers see great advantage in the ability to build real monetary value and to come away with an asset in exchange for premium payments made.

Whichever way you decide to go when shopping for insurance, it is advisable to seek the advice and guidance of an insurance industry expert. Sitting down and talking about your family’s unique needs and financial parameters is the very best way to come away with exactly the type of coverage you need.

Medicare Supplemental Insurance – Filling in Your Coverage Gaps

If you are over 65 years old the chances are good that you receive Medicare health benefits. Medicare can be imperative in helping you with the costs of medical care, covering doctor visits, hospital stays, preventative care and even home health care. Unfortunately, there are times when you require services that are not covered by your Medicare plan. If you find yourself in this situation you may want to consider enrolling in a one of the  Medicare supplemental plans available, also known as “Medigap”. This type of coverage is offered by private insurance companies, and provides payment for services in the amount that is in excess of what has been approved by Medicare.
Medicare supplemental insurance can be very helpful when you find yourself in need of certain care that is not approved by your medical plan. For example, if you happen to travel to a different company and require medical attention Medicare will not cover the cost of your services. There are options for Medigap insurance that will provide coverage abroad. A Medical supplemental plan can also assist in more common situations. This type of coverage can help you with co-pays and deductibles that you may be responsible for under Medicare. It also can help pay for extended hospital stays after your basic coverage has run out.
In order to qualify for Medicare supplemental insurance you must be currently enrolled in Medicare Part A and Medicare Part B. The Medigap insurance is then paid in a monthly premium that is in addition to any premiums you pay for Medicare part B. Each policy covers one person, meaning spouses will each have to purchase their own separate policy. There are many different options for coverage, which can be purchased from any licensed provider in your state. It is also important to note that this coverage is guaranteed renewable as long as the premiums are payed, regardless of any health problems that may arise.
Medicare is a great program that provides help with medical bills to those 65 and older, however it does not always provide all of the coverage necessary for a continuously healthy life. Medicare supplemental insurance can provide you with peace of mind in knowing that if you need more than what Medicare offers it will be available to you.