disability income protection plan sources

Posted: Tue Aug 18, 2009 01:57 am Post Subject: disability

I, TOO, would like to know if there is anything that 'protects' people from having their Disability taken away. I have several 'Clients' on a 'Disability Income' (that's all the income they receive per month..not very much). With income being cut and Budget Bills NOT being signed/approved, my 'Clients' are afraid they may NO LONGER be getting that small income they get now.

Posted: Tue Aug 18, 2009 04:41 am Post Subject:

Disability insurance is contractually driven. Collecting on a claim is completely dependent on the contractual terms. If one policy is cheaper than another, it is usually because it is harder to have a legitimate claim.

Posted: Tue Aug 18, 2009 10:56 am Post Subject: insurance

Mmm.........well, I know a few people who SAY they are Disabled (i don't 'physically' see anything)...however..these people run around all day, do this and do that, etc. They claim Disability checks. However....I have 'Clients' that the Disibility is VERY noticeable (MS, etc.) and they have to have several statments, from their Dr's that they REALLY are unable to work, etc. It's frustrating seeing it from this 'point of view'. These people struggle to get Disibility for LEGIT reasons ( NOT just for "I don't want to work anymore") and then have to worry about not having the income at all, if this economy doesn't get any better.

Posted: Tue Aug 18, 2009 12:14 pm Post Subject:

What does it mean to be disabled?

Is an attorney who makes $500,000 a year, but gets hurt and can flip burgers at McDonalds disabled?

What about the McDonald's worker who can't flip burgers any more, but can write a best selling novel and make millions?

What about the CPA with MS who can still work part time?

The answer to all of those questions is "it depends". What does their contract say.

The one thing that shouldn't make a difference is the econonomy.

Posted: Fri Aug 21, 2009 05:05 am Post Subject:

Hi, IMO the state disability insurance programs are a good source of disability income protection. There are quite a few states which would provide short-term disability policies that cover for 6 months. There would be a payroll deduction for the workers in this regard. This could be a truly useful income alternative for such workers (for a short-term).

Posted: Fri Aug 21, 2009 10:10 am Post Subject:

Hi Cosmos-eage,

You'll find a good source in the form of a disability insurance program which has been administered by the fed. govt.
Even though it protects a majority of workers, it is sometimes tough to qualify for it.

The compensation too may not seem attractive to many since it's dependent on the work history and earnings.
Thanks..Pinkfloydfan

Posted: Fri Aug 21, 2009 10:22 am Post Subject: insurance

I was kind of 'throwing' the Economy thing in there,...because so many 'plans' are being cut for those who REALLY need it ( or..at least I can 'see' they would really need it). You have those who 'play the system' and get just about everything they WANT, not necessarily need. And then who REAALY need it, and can't get it.

Posted: Tue Aug 25, 2009 08:44 am Post Subject:

Hi, I guess the most important source of income protection for disability in the U.S. would be our employer-backed coverage. Many of our employers would provide us with group policies for income protection insurance coverage.

Steven

Posted: Sat Aug 29, 2009 05:23 pm Post Subject:

Just keep in mind that employer backed coverage has many disadvantages. The three primary disadvantages:
1)Employers want the plan to be as inexpensive as possible. The only way to do this with an insurance product is to make it as hard as possible to collect.
2)If the employer pays the premium, the benefit is taxable. The typical plan is 60%. Not too many people can afford a 40% income hit.
3)The plans are usually covered by ERISA. For the most part, this makes it much easier for insurers to deny claims without any negative repurcussions.