Employer offers no disability insurance

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PostPosted: Tue Mar 19, 2013 11:32 am   Post subject: Employer offers no disability insurance  

Is it really important to have disability insurance? I work in the web-marketing business and my employer provides none.


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Sophie Kinsella
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PostPosted: Tue Mar 19, 2013 11:46 am   Post subject:   

It is good to have a disability insurance coverage. This is because in case you you get disabled and cant work any longer, then your carrier will cover 10-20% of your total income depending on the type of coverage you opted for and the terms of the insurance agreement.

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PostPosted: Wed Mar 20, 2013 10:19 am   Post subject:   

Quote:
then your carrier will cover 10-20% of your total income
A disability policy like this would be virtually worthless. adamsarthur . . . you are not a licensed agent, and you understand almost nothing about insurance. Please do not post information unless you actually know what you're talking about.


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PostPosted: Wed Mar 20, 2013 10:25 am   Post subject:   

Quote:
Is it really important to have disability insurance?
During one's working years, it is more likely that you will suffer one or more periods of disability than it is you will die. For a disability income policy to provide a benefit, you must fit the definition of disability and your disability must continue beyond the stated elimination period (which could be just a few days, of a number of months).



There are also short-term disability policies to cover up to two years of total disability and long-term disability policies which might not begin to pay a benefit until you've been totally disabled for a minimum of two years.



A disability income policy will typically not provide more than about 60%-70% of your pretax wage, up to a stated monthly limit.


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PostPosted: Wed Mar 20, 2013 10:34 am   Post subject:   

Disability insurance is necessary as in it acts as a substitute of your monthly wages in case you become disabled.



If your employer doesn’t provide any disability insurance, you should look for some long term disability insurance. Long term disability premiums are cheaper than the short term ones and since you work in the web-marketing business, the chances of getting a long term disability insurance at a reasonable rate is high, unless you have some dangerous hobbies like paragliding or shark-juggling.

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PostPosted: Wed Mar 20, 2013 11:33 am   Post subject:   

Each people in the US avail benefits from the Social Security, which also has a disability provision. Ensuring additional disability insurance is a wise idea especially for people who have a decent family to take care of.



Nowadays, most of the families have it and it is just like another necessity for your livelihood and not lavishness.

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PostPosted: Wed Mar 20, 2013 2:31 pm   Post subject:   

Almost everything in Juanita's post is inaccurate. Social Security Disability is the most difficult benefit in America to obtain due to the defining words "Unable to perform any substantial gainful activity". Additionally, "most families" do not have disability income insurance.



Quote:
Long term disability premiums are cheaper than the short term
There is a reason for this, too. And it's because so few LTD claims ever get paid. The least expensive LTD policies will have a two year elimination period, which means one must still be disabled after two years to begin collecting a benefit. What has that person done for income in the meantime? A public program like California's State Disability Insurance ("SDI") will exhaust its benefit in less than 12 months -- even if a person has paid into it for 40 years and never had a prior claim.



Truth is, the majority of persons who need disability income insurance need a short term disability policy, and some of them would do well to add a long term disability policy to the equation. Anyone with a specialized occupation, or a professional person whose income is in the 6-figure range or higher needs disability income insurance. A person earning minimum wage might have the same need, but probably doesn't have the income to pay the premium.



Most middle income earners probably have an elevated need for a short elimination period STD policy that pays benefits up to two years, but they are more likely to be sold life insurance than disability insurance because most life agents don't understand or offer disability income insurance to their clients.


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PostPosted: Thu Mar 21, 2013 4:15 am   Post subject:   

Quote:
Almost everything in Juanita's post is inaccurate.




Hello Max, would you be a bit specific?



Quote:
...it is just like another necessity for your livelihood and not lavishness.




Perhaps this is inaccurate to you too, and you believe in the contrary.



Quote:
Additionally, "most families" do not have disability income insurance. 




Did you check with each of the 309.1 million US people?



Please try to be a bit respectful toward your fellow moderator from next time and utter things like "I don't agree with you Juanita on this", rather than stating defaming sentences like "Almost everything in Juanita's post is inaccurate.". Thanks!
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PostPosted: Thu Mar 21, 2013 9:21 am   Post subject:   

Quote:
Each people in the US avail benefits from the Social Security, which also has a disability provision.
Nope. Aside from being grammatically incorrect, illegal immigrants don't "avail benefits" from Social Security even if they have a bogus SSN (and they represent about 20-30 million people, but many of them do illegally obtain Medicaid, which is paid for with SS dollars, so maybe that's what you were thinking).



As for SSDI benefits, they are the most difficult to qualify for . . . ever read exactly what "unable to perform any substantial gainful activity" means? If, with your disability, the folks at Social Security believe there is anything in the American economy that you can do that will pay you about $1200 per month, you DON'T qualify for one penny of SSDI benefits.

Quote:


most of the families have it
Care to back that up with statistics? (Unless you are alluding to Social Security, which is a mandatory thing for almost all citizens and legal residents -- but that's not at all the same as most families have disability income insurance) I'll give you the statistic from the US Bureau of Labor Statistics: only about 40% of "all employees" have disability income insurance. 40% does not come close to "most".



Quote:
defaming sentences like "Almost everything in Juanita's post is inaccurate.
Nothing defamatory about that at all, because it's the truth. As for "fellow moderator" . . . this was your first post here in 18 months. For all I knew, you were dead. If I wanted to "defame" you, I would have said something like, Juanita is a #@**&%$#@@&. That would have been defamatory.



If you've decided to rejoin the community, wonderful.


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PostPosted: Fri Mar 29, 2013 9:24 pm   Post subject:   

Max, You are busting on Juanita while at the same time it is quite obvious that you have very little real world disability income knowledge.



Quote:
There is a reason for this, too. And it's because so few LTD claims ever get paid.




Are you sure that "so few" get claimed. What is your definition of "so few"? 45% of SSDI claims ultimately get approved. It is higher than this with both group and individual policies. Over 1,000,000 people were approved for SSDI for the first time in 2011. 5% of the working population is on SSDI, 8.6 mlllion people. 69% of people who get approved for group disability policies also get approved for SSDI.



Quote:
The least expensive LTD policies will have a two year elimination period, which means one must still be disabled after two years to begin collecting a benefit.




The least expensive ones simply have terrible contractual language. Probably 99% of these bad contracts have elimination periods of less than two years.



Quote:
Truth is, the majority of persons who need disability income insurance need a short term disability policy, and some of them would do well to add a long term disability policy to the equation.




The only people who need short term disability policies are people who are living pay check to pay check and have no access to capital if something were to happen to them. The people who need long term disability policies are anyone who is working because they need their income to continue. Virtually everyone who needs short term disability insurance needs long term disability insurance. The opposite is not true.



The problem is that disability insurance is all about the contract. Not only can't a minimum wage worker not afford a decent LTD policy, nobody will sell one to them.



Most people are sold life insurance because unless someone is a white collar worker, they can't get a decent disability policy. With a life insurance policy, death means that a claim will be paid. With a disability policy, "disability" is defined by the contract. If one can't work and can't collect, selling them the policy didn't help very much. Contracts that aren't very good almost always integrate with SSDI. This means that even if they can collect, there is a good chance, that they are getting much less than what they paid for.

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PostPosted: Fri Apr 19, 2013 5:39 am   Post subject:   

Every one just explained about the benefits of disability insurance but question is employer not provide what they do i have also a same problem i also work in a small company there is around employees but employer not provide disability insurance?

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PostPosted: Fri Apr 19, 2013 6:46 am   Post subject:   

First of all, check since the number lock function in your keyboard in down.



Secondly, are you a native speaker? The construction was hardly comprehensible.



Anyway, which state are you from? Each state has it's own workman's comp laws and statutes. If you feel being deprived, complaint to the Dept. of Labor.


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