Insuring Your Life & Protecting Your Income

Accident insurance is typically a supplemental medical policy. It pays benefits when people require medical care for accidental injury. People sometimes confuse accident insurance with accidental death coverage, which is a type of life insurance. This is a specialty health insurance product.

What It Is And How It Relates To Workplace Benefits?

It is coverage that pays benefits to help cover medical care following unexpected injury. Unlike Workers Comp, it can cover both and off the job events. Some employers offer it as an option on a menu of benefits to help employees get the type and amount of coverage they desire.

Who It Is For:

It is popular with parents, because children can do unpredictable things, young adults who are very active, and older people who may be prone to falls. Really, anyone can have an unexpected accident, so anyone can desire this kind of coverage. But some people know they are at greater risk, thus they seek it out.

How It Works:

People often misunderstand what this insurance covers. In a nutshell, in order to get benefits, two things must happen:

1. There must be a covered event — in other words, an accident of the sort specified by the policy — and

2. There must also be medical treatment for that event.

Different Types Of Coverage In Existence:

This is a space where there is no real standard. These policies can differ substantially from one company to another. It is important to read brochures from different companies or even read the policy if possible to get an idea of what the coverage includes.

Major Benefits:

This will vary from policy to policy, but often includes benefits for an initial exam, specific types of injuries and specific types of treatments, such as surgery. There may also be benefits for follow up visits, physical therapy and hospitalization.

It is an unfortunate fact that medical bills remain the number one cause of bankruptcy in the United States. In many cases, these bills are the result of serious illnesses that require years of expensive treatments. Other forms of insurance might cover some of these expenses, but a critical illness insurance policy is the only way that you can be sure you will be covered when you need it the most.

Who Needs This Insurance?

Also known as dread disease insurance, these policies are specifically designed to fill some of the gaps in a typical health insurance plan. Policyholders will generally receive a tax-free lump sum of money if they are diagnosed with any of the medical conditions that are covered in the policy. This type of insurance should be considered by anyone who has a relatively high risk of developing common health problems that are not covered by traditional health insurance.

Critical Health Coverage:

You and your insurance agent will need to take a careful look at your medical history and your current policy to see exactly what is covered. As a general rule, critical illness insurance will always cover cancer, heart attacks, and strokes. Policyholders can then extend their coverage to other major health problems such as kidney failure, organ transplants, and paralysis.

Finding The Right Policy:

This type of coverage can be further broken down into simplified individual protection plans and fully underwritten individual plans. Simplified individual plans have much lower coverage, but they are also easier to acquire. Most policyholders will only need to answer a few basic medical questions before they are approved, but these policies are generally capped at around $50,000. Fully underwritten policies will provide you with much more coverage, but they almost always require a comprehensive medical exam.

When determining the amount of coverage that you would like, you should consider what kind of expenses you might run into if you become ill. The majority of policyholders have this type of insurance to cover major expenses such as their mortgage payments if they become ill.

Disability insurance is a type of private insurance that provides supplementary income to individuals who are unable to work due to illness or injury. The program is managed by the Social Security Administration and is intended for workers who have consistently paid the required FICA (Federal Insurance Contributions Act) tax that funds Social Security and Medicare. It differs from worker’s compensation insurance in the sense that the illness or injury does not have to be work-related.

Who It’s For:

Although each policy is different, these plans are designed to help the insured pay their bills and maintain their standard of living. For this reason, virtually everyone can benefit from having a policy. Even if an worker’s job isn’t particularly risky, they can still have a serious car accident. Furthermore, there’s no guarantee they won’t develop arthritis, chronic back pain or cancer. If any such condition causes them to switch to a lower-paying job, work fewer hours, or not at all, they would benefit from disability coverage.

Types Of Coverage Available:

There are two types of disability coverage: short-term (STD) and long-term (LTD). STD takes over when sick leave runs out and will typically cover the individual for up to one year. LTD takes over when STD runs out and may continue for a period of years, or until the recipient turns a specific age (such as 65), depending on the plan. The term length and amount of benefits provided depend on which plan the individual has at the time it’s needed.

Benefits Of Coverage:

Disability insurance ensures that the worker receives money to pay for their bills and other needs, avoiding major problems like foreclosure and repossession. The individual’s income is thus protected, ensuring that they can still provide for their family. Another major advantage is that these payments do not affect benefits received from any government-administered plans. This makes it possible to have even more money left for therapy or medications.

Will You Leave Your Family Unprotected?

It’s impossible to predict the future, but we can do something now to protect those we love in case the unexpected happens.

One of the major options that individuals and families use to manage the risk of an untimely death is life insurance. The premiums that go toward a policy can really pay off in the long run. Here are some things that are important to understand regarding this type of insurance.

What It Is:

Insurance is effectively a risk-management tool. Life insurance is intended to help bear the burden that can come from an unexpected death. Effectively, purchasing a life policy is a bet that you will die and your family will need to have access to money. Additionally, some policies build a cash value that can pay off in increased cash flow in retirement.

Who It Is For:

Major breadwinners who do not already have millions in the bank should have a policy to take care of their families’ financial needs in the case of their untimely demise. Those who are single might still want to have enough insurance to pay for their final expenses so that these costs do not fall to their remaining family members and cause a financial burden in addition to the grief that will inevitably come from the loss of a loved one.

How It Works:

Insured parties pay a premium each month that will then go into a pool that will grow and pay the beneficiary of those who die. Companies employ underwriters to see that there is enough revenue from premiums to pay for any claims.
Different Types Of Coverage:

The two major forms of insurance against death are whole life and term life. The former allows the insured to own their policies, and these policies will also build cash value that policyholders can access. The death benefit will usually grow over time because of excess premiums paid. Term insurance is in force only for the term of the policy, and the premiums that people pay for these policies are usually much smaller because they pay a fixed amount upon death and are not considered investments.

Major Benefits:

The major benefit that a policy can provide is the peace of mind that can come from knowing that one’s family will be provided for in the case of their death. Additionally, a whole life policy can add cash flow that can make your golden years a bit more golden.

Long term care insurance, or LTC, provides coverage that grants policyholders financial resources and support to assist them with long-term care costs. Long term care can be necessary for those that are ill, accident victims, or for those afflicted by various ailments that come with aging. Those insured can expect specific benefits depending on their insurer, with advantages available to them that they wouldn’t have uninsured.
Employer LTC:

There are many employers that provide long term insurance in several varieties. LTC, like other workplace benefits, are offered to aid in employee productivity. As a care plan, it exists to mainly assist employees that are responsible for highly dependent individuals. Though LTC does not come free to employers, LTC insurance costs, like other benefit packages, are mitigated by company tax deductions and increased workforce productivity.

What LTC Encompasses:

The need for long-term care is inevitable for many. For those that are researching care insurance, it should be known that LTC expands beyond covering for care facility costs. Long term care can encompass hospice care, skilled home care, various types of therapy, and additional services that relieve dependents from daily tasks and responsibilities. Those seeking a suitable policy should evaluate their daily and health care needs, what they can afford, if their agency is certified or licensed, and if they qualify for subsidized aid.

Prospecting policyholders should research and verify long term care insurers. There are many government resources that provide information for those in need of extended care. Options vary between private entities, Medicaid, and other policy providers. Those seeking policies should also review the conditions for coverage, making sure that they are getting assistance for services and other costs that meet the needs their condition entitles them to.

Financial Benefits Of LTC:

There are many financial incentives for individuals to get long term coverage. Depending on the qualifications of their policy, those that are covered can be eligible for favorable tax treatment. However, it should be noted that LTC federal tax deductions vary in availability between states. There are also plans that exist to protect policyholders from inflation costs. For those that wish to pay a consistent rate without risk of having their premiums rise, inflation protection is a good way to mitigate potential rises in healthcare costs.

Supplemental insurance is an insurance protection program that is meant for people who do not believe that their primary insurance coverage programs are giving them enough coverage. They are add-on programs to primary insurance plans of all kinds, and they may or may not be underwritten by the same insurance companies.

Who It Is For:

A supplemental protection program is meant for anyone who fits the above condition. Most of the time, the people who take on a supplemental protection program do so to cover certain medical expenses. A supplemental medical plan has the ability to completely eliminate the deductible of a primary insurance plan, helping to ensure that a patient does not have to pay out of pocket during any visit to the doctor. This is an especially important feature for indigent people who may not have the mental capacity to pay a deductible out of their pocket during a medical emergency.

How It Works:

A supplemental protection program begins to pay out lump sums of cash to medical facilities after the primary insurance package has exhausted its benefits or if the primary insurance package simply does not cover something that the supplemental package does.

Different Types Of Coverage In Existence:

The major type of supplemental protection program is a medical package. However, there are many different types of supplemental protection programs that are meant to cover businesses as well as individuals. These supplemental protection programs may cover anything from political upheaval all the way to luxury items.

Major Benefits:

A supplemental protection program covers everything that a primary insurance plan does not. It also keeps a person from paying out of pocket during a medical emergency, a contingency that may save someone’s life in extenuating circumstances.

A life insurance policy will provide you with peace of mind knowing that your family will be cared for in the event of your death. In addition to the death benefits, many of these policies can also be used as an investment vehicle to build wealth over the years. Here is a quick look at exactly what sets universal life insurance apart from all other policies and why this type of coverage might be right for you.

Understanding Permanent Life Insurance:

Universal policies are a type of permanent life insurance because they will remain in force as long as the premiums are met. While some universal policies can be purchased for a shorter period of time, they are generally kept for the policyholder’s entire life. As with other forms of life insurance, the amount that will be paid to the beneficiary is determined well before the policy becomes active. Policyholders can choose almost any amount depending on the financial needs of their loved ones.
A Flexible Insurance Policy:

One of the reasons that universal policies are so popular is because of their flexibility. You will not be locked into a permanent policy with flat premiums for the rest of your life. In fact, any interest that is made can be used to keep the policy in force after it has reached a certain value. If the policyholder is financially comfortable and would like to increase their premiums, then they have the ability to add extra value to their policy. When times are tight, they can use the cash value of the policy to continue paying for the premiums.

A Cash Value Component:

Another reason that these policies are so popular is because they have an investment aspect built into them. Before the policy becomes active, you and your insurance agent can discuss the contractually stated financial index. This is the interest rate at which your policy will build wealth. In some financial climates, these investment vehicles can be a lucrative way to improve your net worth. At a certain point, the policyholder will be able to withdraw the money or take out loans against their life insurance.