What Professionals Need to Consider When Purchasing Long Term Disability Coverage

Part 1 of 3

For the majority of successful professionals such as physicians, dentists, attorneys, investment bankers and other high-income executives, the purchase of long-term disability policy is generally regarded as a necessity rather than an option. As incomes increase over the years, families grow, and expenses escalate, and the possibility of losing that substantial income due to a disability can be daunting and difficult to face.

As a result, here are some tips for high-earning professionals considering purchasing a disability policy and some pointers for those who may have already purchased coverage:

1) Know THE ODDS

- According to the Council for Disability Awareness, over 25% of today's 20 year-olds will become disabled before they retire.

- Approximately 95% of disabilities are caused by illnesses rather than accidents.

2) KNOW YOUR NEEDS

- 44% of U.S. families are spending more than they earn. If you're among them, purchase adequate coverage to replace your income and don't expect to be able to subsidize it with earnings from retirement portfolios.

- Anticipate how much you and your family are likely to need as your income increases and add coverage accordingly. Ask about COLA (cost of living adjustments) that can make a significant difference in the amount of benefits received when disabled and find out if residual benefits riders are appropriate for your needs.

- Consider purchasing FIOs (Future Increase Options) that allow you to increase your coverage on an attained age basis, without having to provide evidence of insurability. You never want to find yourself with earnings that have increased significantly, that cannot be protected because you can no longer purchase coverage, based on poor health that makes you ineligible for additional coverage.

UNDERSTAND INSURER(S) AND CONTRACTS DIFFER

- Disability policies are NOT all created equal. As legal contracts, they can be filled with countless options, confusing terminology, multiple definitions of disability, criteria for exclusion, renewability, premium increases, etc. Seek an independent disability professional to help you understand your policy before you purchase it; one who will also be available for consultation as your income stream increases and you add coverage.

- Lifetime benefit riders make a HUGH difference to disabled claimants no longer able to continue working and generate income. In is not unusual for high income professionals to develop a lifestyle that is more than just difficult to change if they should ever become disabled.

Consider these tips when purchasing coverage, but when it comes to filing a claim that's a horse of a different color.

Should you ever need to file a claim for disability benefits, consider engaging a professional Disability Claims Consultant who has an an expert's knowledge of the claims filing process and the experience to help you successfully navigate through the complexities of the claims filing process.

All prospective claimants need to research how consultants work; how and what they charge and most importantly they need to determine if they feel comfortable with not only how they work but if their personalities are compatible so that they can proceed in what is a critical relationship they will establish with the claims consultant over the course of this process.

If that rapport is lacking, it will jeopardize the success of getting the claim(s) approved, in which case the claimant should explore working with other claims consultants, until they find one that meets their criteria as the customer.

Long term disability insurance is a necessity for high-net-worth professionals, to protect their dignity and lifestyle should they ever become disabled. It is therefore imperative that they force themselves to make the time needed to research the numerous benefit options and determine which are most suitable for their situation. Find an insurance professional who specializes in selling disability insurance to guide you through the process and work with you as your professional career progresses.

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What to Expect When Applying For Individual Disability Insurance

Disability insurance provides working professionals with protection against the financial risk of someday being unable to work due to a sickness or injury. If a sickness or injury prevents you from working, disability insurance can provide monthly benefits intended to replace a percentage of your pre-disability income. In order to obtain an individual disability insurance policy consumers should be in fairly good health and must undergo a process known as underwriting. For consumers interested in obtaining coverage, below is an explanation of what you should expect during the application process.

Completing the Application for Insurance
There are still some agents that prefer to complete insurance applications during an in-person meeting, but in many cases the application can be completed by phone and electronically. An application for disability insurance will generally range between 11-25 pages covering a great deal of issues including your personal information, work related information, medical history and a general risk assessment. In addition to answering questions, an applicant must also sign specific authorizations which allow for the insurance company to review any medical information necessary to thoroughly underwrite the application. At the point of submitting your application you should also be prepared to provide financial documentation to prove your current income.

Insurance Medical Exam
Depending on the amount of disability insurance being applied for, most consumers will be required to complete an insurance medical exam which is provided by a paramedical service. The medical exam can be conducted at your home or work place and generally includes regular lab work, a shortened medical exam and a thorough questionnaire regarding your medical history. This is a similar medical exam to that which is required for life insurance.

Personal History Interview
Although it may seem tedious and extremely repetitive, the final data gathering stage is known as a personal history interview or phone interview and includes questions very similar to those on the application. The interview will be conducted by a third party representing the insurance company and the interview results will be sent directly to the insurance company for review.

The "In-Between" Stage
Once this information has been received, the insurance company will begin a thorough review process and may even order medical records directly from your current and prior physicians if needed. This stage can vary in timing and often makes up the majority of the application process - between two to four weeks. Although it may not take more than a few days for documents and medical records to be reviewed by an underwriter, it can take a few weeks to obtain the actual medical records from your physician's office. Try and be patient during this time as much of it will be out of your or your agent's control.

Receiving and Reviewing Your Offer
Following an in depth review of your personal, medical and financial situation the insurance company will either decline or approve your application and make an offer. Consumers should review their approval carefully as this will provide the true parameters of the benefits being provided by the policy. Although you may have initially applied for one thing, you could be approved for something slightly or completely different. Any changes that have been made will require your signature as a form of acknowledgement so be sure to review the policy, the policy summary and any amendments with your agent before signing these forms.

This summarizes the disability insurance application process. Be patient and apply knowing that underwriting will take a total of four to eight weeks on average. The most important thing is that this will provide you and your family with the income protection and financial security needed, against the risk of disability.

Michael L. Relvas, CFP® is the owner of MR Insurance Consultants and also the creator of the Buyer's Guide to Disability Insurance for Physicians. For more information or assistance in applying for coverage, contact Michael at 800-817-4522 or visit disability insurance.

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Advantages Of Taking Up Individual Disability Insurance Cover

Among the advantages of having individual disability insurance is financial support and help that is issued to your family members by the social security. Employers can secure this type of cover for their workers. This type of cover makes sure that a disabled individual together with the family get support for a certain period that the insured person is disabled. Getting this type of cover poses very many advantages to the insured.

This cover acts as protection. Statistics state that there is a thirty percent chance that you can be disabled when you get to the age of sixty. Not all employers assure the workers of getting them this type of cover. Moreover, very few people that are self-employed have relevant knowledge concerning this type of policy. Nevertheless, this type of cover offers tax-free income for your requirements mostly when you are unable to work.

Another advantage is caps. Group plans have caps. This means that you will get to pay a certain amount and percentage of your income. When your income is low, you will get to pay a lower percentage. However, most insurance companies restrict one from taking up a cover that is sixty percent of the earnings.

Disability payments are free hence allowing more the 60% encourages sluggishness and inability to extend the cover. The insured ends up getting more on disability than the amount that one would have incurred in levies while still working. This therefore reduces the motivation of an individual.

You find that, you also get to benefit from this kind of policy depending with your occupation. The group disability covers consider one disabled once you are unable to perform certain tasks. A good example is a surgeon that has lost a finger for the person is able to teach but is unable to perform surgeries. This implies that the professional is not entitled to get the benefits. One can take up a policy that has the occupation clause inclusive so as to get the benefits when you are unable to perform your duties.

There are also the locked-in benefits. Once an individual has taken up this cover, the firm is not in a position to revoke the cover, if the individual has the definite renewable policy. However, when you fully rely on your employer to pay for the cover, the firm can opt to switch to carriers on to deny you the policy the next year.

You also benefit from inflation protection. When you are taking up this cover, you can attach an inflation protection clause. When you are disabled for a prolonged period, your ability to purchase cannot increase. Having this type of protection increases the payment depending with the increase in inflation.

You can also get partial benefits when you have the individual disability insurance cover. In case you are not able to work the full hours, which will reduce your income, you get partial benefits. You are also at an advantage for you will get the partial benefits when you are disabled but you can work after a short time.

You will find a review of the reasons why you should invest in disability insurance for individuals and a summary of the factors that determine disability insurance rates, now.

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Social Security Disability and the Importance of Your Prior Work

I had a recent Social Security Disability hearing for a 59 year old man (John Doe) who had been a plant manager for a cement company. He had been denied his claim by the district office on the grounds he retained the ability to do light duty work (lifting up to 20 pounds). The district office concluded his job as he did it was medium work (lifting up to 50 pounds). The office then concluded he could not do the job as he did it but could do the job as described in the Dictionary of Occupational Titles (DOT). The DOT described the plant manager position as "light duty work" as it is usually done in the national economy.

Since the district office found he had the residual functional capacity (RFC) to do light duty work and that the plant manager job was light duty work as defined in the DOT, they denied his claim for disability.

In reviewing Mr. Doe's case with him, I found he had less than a high school education, that he had worked for his employer for 35 years, that he did not hire and fire, that he did not prepare reports, and that he did supervise two other workers but did much of the work himself. I concluded his occupation sounded more like a "maintenance mechanic" than that of a "plant manager" under the DOT. I consulted the book and yes his job did seem to appear to be that of a maintenance mechanic.

At the hearing in front of the Administrative Law Judge (ALJ), I claimed John Doe was disabled under the Grid due to the fact he was of advanced age (59), he had limited education (less than high school), he was reduced to light duty work by his ailments, and his actual job positition at the cement plant was that of a maintenance mechanic even though he was called a plant manager.

The Vocational Expert (VE) who was at the hearing agreed that based on John Doe's testimony he was actually a maintenance mechanic and not a plant manager. She also agreed John Doe could not do the position of maintenance mechanic as he did it or as it was described in the national economy because it required medium level work (lifting up to 50 pounds).

Nonetheless, the ALJ was bothered by the fact the John Doe had claimed throughout his application he was a "plant manager" on the forms he had filled out. I did persuade him with affidavits from his former owner and former safety director that his duties were those of a maintenance mechanic and not that of a plant manager. Based on the affidavits the ALJ granted John Doe his disability benefits.

In summary the key to John Doe's case was determining his prior work as plant manager was not actually the duties of plant manager as defined in the DOT. Rather, his prior work was that of maintenance mechanic. Once, I established his current prior occupation I won the case.

Jerry Lutkenhaus is a practitioner of Social Security Disability law in the Richmond, Virginia area for over 30 years. He was given an "AV" rating by Martindale Hubbell in 2003. Lexis Nexis listed him in the 2005 Bar Register of Preeminent Attorneys. For more information, see http://www.geraldlutkenhaus.com and http://www.virginiadisabilitylawyer.com You can call Jerry Lutkenhaus now at 804-358-4766 for a free consultation about your disability case.

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Disabled Veterans Unable to Work Can Get A 100 Percent VA Rating and Full Benefits

If you are a disabled veteran who can't work, you could be entitled to full disability benefits from the Department of Veterans Affairs (VA) even if your current VA rating is below 100 percent. You could get Total Disability based on Individual Unemployability (TDIU).

What Does It Mean To Be Unemployable?

Veterans are unemployable if the disabilities they have that are tied to their military service are preventing them from working. The most extreme situation is that a veteran is unable to work at all. Additionally, unemployability can also be claimed if the veteran is unable to keep a job, or to earn enough money to live above the annual poverty level, which is currently set at $11,170.

Unemployability can also apply to a disabled veteran who works on a farm or for a family business, even if their income exceeds the annual poverty level. This is referred to as "sheltered employment,"

If any of these situations describe what's happening in your life, you should look into getting full benefits based on individual unemployability, especially if the VA rating you currently have makes you eligible for TDIU.

What is the VA Rating Criteria for Individual Unemployability?

In most cases, your current VA rating must meet the VA's criteria for TDIU. For example, if you have a disability rated at 60 percent or higher, you are eligible. You can also have a combined VA rating of 70 percent or higher for two or more disabilities as long as one disability is rated at 40 percent.

There Are Exceptions to the VA's Rules

Eligibility is not always that cut and dry. Believe it or not, you don't have to necessarily meet one of these VA ratings to qualify. The VA understands that each and every disability case is different. Yours may be linked to a specific situation that supports why you can't work. So, if you feel your service-connected disability is interfering with your ability to work, you may be entitled to more money from the VA.

Can TDIU Benefits Stop?

There are a couple of scenarios that could affect the continuation of your TDIU benefits.

Even, if you are awarded a 100 percent rating based on unemployability, the VA could still discontinue TDIU if they decide that you are fit to work. That decision would be based upon a requested medical examination. Your TDIU status will end and you will go back to getting compensated based on your actual VA rating.

If you do starting working again, you'll lose TDIU after a year and you will simply go back to getting disability compensation based on your actual VA rating in addition to a good steady salary.

The important thing is that if you're a disabled veteran who can't work now, you can pursue full disability benefits even if your VA rating is not at 100 percent. Getting professional guidance from a VA Disability expert can go far in helping you get through the complexities of the program.

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Top Tips for Flood Protection

Flood damage can be extensive and expensive. It is not always covered by home insurance policies so it is advisable for homes and businesses to take some simple but effective precautions to minimise the risk to their premises and keep costs to a minimum.

Businesses must also have an effective plan to remain operational if disaster strikes, otherwise outgoing costs will sky rocket and incoming payments will cease. In an average year, DEFRA and the Environment Agency (EA) calculate that the cost incurred per flooded English business ranges from £75,000 to £112,000.

Here are some Top Tips to help ensure minimal distress in case of flooding in your property.

Minimising Risk

1. Know your situation - If you don't know whether or not you are at risk of flooding, find out. People always say, "I never thought this type of thing would happen to me". Investigate the risk, if there is a chance it could happen to you, be prepared for it. The Environment Agency monitors the UK for flood risk and issues warnings to areas in danger of flooding. Register with the EA Floodline to receive warnings of flood.

2. Plan - If you don't have physical flood protection, you may need to evacuate and this will need to be safely monitored and organised. Businesses could modify an existing fire exit strategy. Ensure you have a flood emergency response plan and an emergency response team. Appoint a Flood Warden to show staff where the plan is kept along with a list of key contact numbers. Consider preparing a flood kit that can be stored where staff members can easily get to it if the property is flooded.

3. It is a wise idea for businesses to have a continuity plan to facilitate continued operational effectiveness. Modern technology makes it easy to have a portable company. You can relocate to another property (perhaps a room in the business owner's home), or at least have a scaled-down operation functioning for the duration of the flood. Homeowners can modify these guidelines to make sure they are able to effectively look after their families if they find themselves caught in floods.

4. Have a plan of action in case of flooding: have sandbags or a flood barrier to help keep the water out, know who is in charge of doors, windows, drains and air vents, who will be responsible for tracking the status of the flood, have an exit strategy, and a list of contacts where you could stay in a worst-case scenario, as well as your local support telephone numbers. Also keep a family flood kit, which contains a few essentials, particularly for any children, and make sure you grab your laptop and mobile phone since these could prove essential for learning more about the extreme weather conditions and staying in touch with people who could help. For both businesses and homes, it is vital to ensure that someone is appointed to turn off all the gas and electricity.

5. Are you protected? - Check insurance policies to see if you are covered for flood damage. Only a small percentage of people in high flood risk areas know if their insurance covers water damage. If you can keep the water out, this is better than fixing the damage. Look at simple preventative steps you can take such as portable flood barriers.

Reducing Flood Damage

1. Switch Off and Relocate - Relocate high-value items, critical records and electronic equipment to upper floors. If it is safe to do so, move essential vehicles to higher ground. Disconnect all electrical appliances and shut off the gas supply to reduce the risk of fire.

2. Hold Back Hazardous Water - Flood waters are often contaminated with biohazards (sewage, medical waste, animal waste and carcasses) or other hazardous materials (fuels, asbestos, farm chemicals, etc.). Flood-damaged buildings may also have damp areas where moulds, mildews, and other organisms thrive. Close hand-operated valves on drain piping to prevent backflow through floor drains or plumbing fixtures. Check roof, floor or yard drains are clear.

3. Document Any Damage - Take pictures of the damage, both to the property and its contents for insurance claims. Notify insurers of the damage and schedule restorative works.

To find out more about how you can protect your home or business, visit Floodgate

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How Do You Make A Water Damage Or Flood Clean Up Claim To Your Insurance Company?

As a water damage restoration clean up professional for over 22 years, getting use to how a claim is made by a homeowner when they have water damage is easy. But most homeowners have no idea how or who to call when they have a water damage or flood damage issue.

When a call comes in for a water damage or flood damage most homeowners will ask the obvious question "how much do you charge for your services"

Any contractor that gives any answer is fooling the customer do to the fact that every water damage or flood situation is different.

The first question that will usually come out of the mouths of experienced and qualified water damage restoration companies (notice I didn't say carpet cleaners who also do water damage clean up) do you have insurance. Most homeowners will say yes, but I am not sure if the company will cover the damage.

Here are some steps and tips on how to proceed in finding out first if the insurance company will pay for your damage.

Look for your insurance papers (documents) that you received from your insurance agent and look for the phone number that contacts the claims office of your insurance company. Sometimes even the agents themselves have trouble digging through the paper work to find the claims phone number. The best suggestion is to look on the internet for your insurance companies claim number. It's usually easy to find on the first page of the site.

Before calling understand the insurance language. The insurance company person on the phone that you will discuss your possible water damage claim is called an adjuster. Your damage is referred to as a claim,peril or a loss. I know loss sounds strange but that's the language that is used. There maybe someone who will come to your house from the insurance company and that person is also called an adjuster. The documents or paper work that was given to you originally by your agent is called a policy. The policy is your contract and in most cases clearly spells out what is covered and what is not. That leads us to the word covered that I just mentioned. The word covered is used when the insurance company accepts responsibility to pay the costs of the damage of the items that were damages by the water damage and the clean up costs and repair costs of home items like drywall, carpet.

When talking to the adjuster on the phone don't talk to much. Just keep it simple with just the facts. As honest as you are, insurance company adjusters are not out to deny every claim as everyone thinks. There are state and federal laws that the insurance companies must follow, so the insurance companies work on proof.To keep it easy get proof of why the water damage happened like a bill or written statement from a plumber or the city or county of why something happened. Pictures are great and your dishwasher or washer machine appliance repairman will be your best friend to prove to the insurance company your damage is a "covered loss."

These days insurance companies will suggest a water damage restoration company to come out and mitigate the damage. Mitigate is the term that is used to clean up and stop further damage from happening. Most insureds (that's you the homeowner) believe that the water damage clean up work will be guaranteed because the company mentioned their name. Actually the company only suggests and will not back up any companies work. Remember that you the homeowner has the legal right to use anyone you want to.

Contacting the insurance company to make a claim can be nerve racking to some homeowners. Just remember to be calm and relay the facts.

Jeffrey Cohn
SI Restoration
IICRC certified
http://www.si-restoration.com
Stericlean Certified Hoarding Specialist
            1-800-356-0484      
            410-458-5371       (cell)

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