Buyers of disability insurance must be aware that there is no regulation regarding the various terms used in individual long-term disability insurance. The definition of “own occupation” stated within one provider’s contract is not necessarily the same as another’s. As is typical for most of us, the consumer is not likely to read an entire contract to discern the differences in definitions. You may believe that an “own occupation” policy is the same as “modified own occupation one.”

You need to know that some insurance agencies will market disability insurance policies with the words “own occupation” on their marketing materials, but the policy is actually anything but the “own occupation” insurance as defined just ten years ago. What the companies are actually marketing are income replacement contracts.

As you might think, based on the name of the insurance, “own occupation” should mean that if you are injured to the point of being unable to perform the duties of your chosen occupation, the insurance company will pay you regardless of whether or not you are capable of performing another. However, the new (and, in my opinion, quite deceptive) contracts usually state “so long as you are not engaged in any other occupation” meaning that if you make a claim and then begin working in another field, the insurance company will reduce your disability benefits accordingly. They may possibly end the claim and not pay you anything.

You should never take the word “own occupation” for granted; to make sure you are receiving the best definition of total disability look for something like this:

“Because of sickness or injury you are unable to perform the material and substantial duties of your regular occupation. We will consider you to be totally disabled even if you are at work in some other capacity, so long as the disability prevents you from performing your original occupation”

If the words “any other occupation” or “gainful occupation” are in the contract, you may want to look elsewhere to see if you are eligible for a true “own occupation” policy. Certain occupations are simply not eligible for this type of coverage.

There is a tremendous amount of information to understand in a disability policy; they are often easily misinterpreted by anyone unfamiliar with how the insurance coverage works. You should always contact a professional and ask all the questions you can think of to fully understand what your contract covers – AND, what it doesn’t.

Fibromyalgia, a sometimes terribly disabling syndrome, is, unfortunately, something many of us – myself included – find ourselves having to deal with. For those whose fibromyalgia is severe enough to keep them from working consistently, it may become necessary to seek Social Security Disability Insurance (SSDI).

The following are the five steps involved in determining if an individual with fibromyalgia qualifies for SSDI:

1. Determine whether or not an individual is working according to the Social Security Administration’s definition. Basically, if you are engaging in “substantial gainful activity” (working) and earning more than $1,000 per month, you will, in all likelihood, be disqualified from receiving any disability benefits through Social Security.
2. Conclude that disability due to fibromyalgia is severe enough to significantly limit an individual’s ability to do basic work activities that are necessary for most jobs. Examples include walking, sitting, standing, lifting, pulling, pushing, reaching, handling, and carrying as well as hearing, speaking, and seeing. Further examples are understanding, remembering, and carrying out simple instructions, and responding to supervision, co-workers, and work situations in an appropriate manner.
3. Because fibromyalgia does not, at this time, have a medical listing, an adjudicator must “equate” a medical listing. Widespread pain for a minimum of three months is required to establish fibromyalgia as a medically determinable impairment. Additionally, pain on palpatation must be present in a minimum of 11 of the 18 tender point sites (identified by the American College of Rheumatology and the Centers for Disease Control. You must also present evidence of morning stiffness and/or stiffness after sitting and fatigue must be present. In order to equate a medical listing, the symptoms, signs, and laboratory findings have to be equivalent to a listing that has been established. Finding of disability is usually at Step 5 (functional limitations are so significantly eroded that the occupational base for sedentary work is impossible, therefore a finding of disabled is warranted).
4. Determine whether or not a person can perform work he or she has done in the past in spite of his or her fibromyalgia. Benefits will be denied if the SSA finds a person able to do his or her past work. If the individual is not able to do previously done work, the process continues to the fifth and final step.
5. Review work experience, education, physical/mental condition, and age to determine if there is any other job the individual is capable of performing. The SSA enlists medical-vocational rules, which vary according to age, to determine fibromyalgia disability.

It can – and likely will be – quite difficult to obtain SS disability and will most certainly take quite a while to receive the benefits; take a look at all the steps the SSA takes to determine eligibility to see whether or not you think you might qualify before stepping into the difficult process of seeking disability. I am personally in the midst of claiming disability, and, believe me, it’s not an easy task.

Most people would probably agree that the Aflac duck is adorable and a great marketing tool; what everyone can’t agree on is whether or not it’s wise to choose one of their many insurance policies.

Aflac, a Fortune 500 company based in Columbus, Georgia and founded in 1955 by the Amos brothers, Paul, Bill, and John, is available to everyone in the U.S. as well as various overseas markets. In fact, Aflac is the insurance of choice for a fourth of the households of Japan.

Aflac shares have been performing quite well lately, proving that the company prides itself on offering and providing high-quality products and services at competitive prices. Additionally, Aflac is consistently reported to be one of the -most employee-friendly companies, especially so for working mothers and minority women.

Aflac offers term life insurance, whole life, or a combination of both. You won’t be required to have a medical exam or blood tests when applying for insurance with Aflac, so the company can’t disqualify you based on your current state of health. The coverage you’ll receive will include a Waiver of Premium Benefit and an Accelerated Death Benefit.

Aflac consistently receives grades of A+ (the best being A++) from a variety of independent insurance rating companies. Generally speaking, Aflac shows customers as happy with the insurance coverage they’ve received; they like the flexibility of its plans and the quickness of fulfillment of claims.

Aflac carries a wide variety of insurance including long-term care, life insurance that can be used to care for your family should you die or as retirement income, insurance that will cover your expenses should you be unable to work, cancer insurance (not available in all states), and supplemental health insurance (to work in combination with health insurance you already have or to diminish the costs of healthcare if you are not able to afford regular insurance).

As a former Aflac salesperson, I can personally recommend the company if you have a need for unique coverage; excellent and affordable, Aflac can be a great addition to the coverage you already have.

The odds of sustaining a personal injury severe enough to prevent you from working are astounding – thirty percent of individuals between the ages of 35 and 65 will be disabled enough to prevent them from working for an average of 90 days.

When you’re facing these kinds of odds, you want to be sure you are protected; you may be anxious to begin finding ways to be prepared for a possible injury that disables you severely enough to keep you from working, but first let’s take a look at the protection you may already have in place:

Social Security

Social Security provides both disability and retirement income; however, qualifying for social security disability is pretty difficult and often requires the assistance of an attorney to win access to the funds you may be entitled to. Because of the level of difficulty involved in qualifying for social security disability benefits is so high, it isn’t the best idea to count on it as your only protection should you be too ill or injured to work.

Workers Compensation

Employers, as required by law, must provide workers compensation to employees. Remember, though, that this type of disability insurance will only pay if you are disabled due to a job-related accident or illness. These payments are often quite low and only paid for a short period of time. Given these limitations, workers comp is also a form of disability insurance you shouldn’t count on to cover all your expenses should you be rendered unable to work.

Individual Disability Policies

If you want to fully protect yourself and your family should you become disabled, an individual policy is the safest and most comprehensive way to do it. These types of policies vary widely, so keep several variables in mind. Of course, you’ll want to be sure you find a policy that will provide the highest monthly payments for which you would qualify.

You also need to consider to what degree you want to be covered. Two of the options you will find are “own occupation” and “any occupation.” A policy that covers you “own occupation” is guaranteed for life and will allow you to work part-time in another field while you are collecting disability payments for not being able to conduct work in your chosen field. “Any occupation” coverage will only be effective if you are unable to any type of work; this is not as good a coverage, obviously, but will be somewhat less expensive.

Another important variable is the period of time between being injured or ill and the time it will begin payment. Policies that require longer waiting periods are more cost effective in the long run, assuming you don’t become ill or injured during this period of time.

Lastly, consider the length of the benefit period. You’ll want to choose the longest benefit period you can afford that the insurance company offers. This is the most important variable; it should be considered first when selecting a disability insurance policy.

Disability Insurance Companies

Once you’ve considered the variables, utilize your decisions to search for an insurance company that offers disability insurance. Do research on the companies’ financial stability to ensure the likelihood of them paying a claim should you need to file one. Additionally, you should find a company that offers a non-cancelable contract guaranteeing your rates and benefits without having to negotiate a renewable policy.

Entrepreneurs Need Health and Disability Coverage

Health and Disability Insurance for the Entrepreneur

One of the greatest concerns a self-employed entrepreneur has is finding affordable health insurance and often, as well, disability coverage. There are myriad decisions to make and a vast number of insurance companies to research. One way to research the companies in your area would be to call and request a benefits and coverages booklet so you can take a look at what they have to offer at your leisure. You could also look to the Internet to do this type of research.

Be sure to research the companies for a variety of issues such as the following:

1. Annual premium
2. Costs of policies with higher deductibles
3. Costs of policies with lower deductibles
4. Drug coverage benefits
5. Hospitalization
6. Dental and/or vision benefits
7. Waiting period for pre-conditions
8. Co-payment(s) for office visits

A business owner needs to also strongly consider purchasing disability insurance; like unemployment benefits, disability is not automatic for an entrepreneur. But the coverage can be essential in covering expenses should you be unable to pay them yourself. An individual policy can cover many options and help you immensely in the face of a disaster that renders you unable to work and run your business.

A disability policy needs cover the following:

1. Coverage of most/all daily expenses
2. Coverage of most/all routine monthly bills
3. Coverage of most/all auto payments and insurance premiums
4. Coverage of most/all weekly/monthly groceries and transportation costs

Be sure you shop and investigate costs and coverages as much as time allows to find the best insurance at the best rate. You never know when something might happen; you want the best coverage possible, just in case!

Qualifying for Short-Term Disability

Oftentimes employees who need a brief break from work-related duties due to a particular medical condition or an injury are eligible for short-term disability benefits once he or she has depleted all of the sick leave to which he or she is entitled.

Many employers will provide their employees with short-term disability benefits of between 50-70% of his or her salary during the necessary leave of absence, however, larger employers may pay as much as 100% based on the employee’s length of employment. A typical short-term disability plan will pay benefits for a period of 13 to 26 weeks. This benefit will usually be computed as a percentage of gross weekly salary (without commissions, bonuses, or overtime).

One form of short-term disability is the Family and Medical Leave Act (FMLA) – The federal law provides job protection for those who must take time off for medical reasons. This law applies to all employees who are employed by a company with 50 employees or more in the “same geographical area.”

Basically, any employee who needs to attend to their own medical condition or take time off to care for a spouse, child, or parent for a medical reason is protected under the law if he or she was an ordinary employee working for an employer for at least twelve months or 1,250 hours in the most recent year.

A worker returning to his or her position after taking FMLA leave retains his or her job title, with the same benefits, pay, seniority level, and working conditions prior to the leave. The benefit is available for a maximum of only twelve weeks per year, but do not have to be taken consecutively.

Both state and federal short-term plans can offer income when you need to take a temporary leave from work, while at the same time they can guarantee the protection of your job and its entitlements.

To know more about the short-term disability benefits that may be available to you, a consultation with a short-term disability lawyer can provide you with the information you need.

Home-Based Business Insurance Decisions Are Important

When you are just beginning your home-based business purchasing insurance coverage for yourself and your family may not be one of your priorities but it is unwise not to make it such. If – or more likely WHEN – disaster strikes, having insurance will make the difference between your business’s success or its failure.

Though you may not require every type of insurance listed here, take the time now to consider your insurance needs; it will save you money as well as headaches down the road. Ultimately, the best way of determining your needs is to consult with an insurance agent. Explain the details of your business to him or her; he or she will then be able to determine what the best coverage will be for you and any employees you may have.

Health Insurance:

Your first consideration should be health insurance. If you have recently left an employer, you might be eligible for COBRA, which can provide temporary interim health coverage for those who are between jobs and would otherwise be without insurance.

Disability Insurance:

Disability Insurance guarantees that you will have some amount of income if you suddenly become unable to work due to an accident or illness. Individuals often feel that the peace of mind they receive from having this type of insurance is well worth the cost of such a policy.

Life Insurance:

Life Insurance ensures your family has money if you die suddenly. There are lenders who require you to have life insurance prior to lending you money; this guarantees repayment of the loan should you die unexpectedly.

Business Property Insurance:

Business Property Insurance protects you should you have a loss of inventory or equipment. If your business suffers loss due to flooding, fire or another disaster, business property insurance allows you to recoup your losses.

General Liability Insurance:

You will need to have General Liability Insurance for your business if you plan to have customers or clients come to your home. This type of insurance protects you should someone visiting your home be injured while on your property. It will typically pay your legal defense fees as well should you be faced with a lawsuit as a result of the injury.

Business Interruption Insurance:

Business Interruption Insurance helps your business recover from natural disasters by covering the income you would lose and paying the operating expenses that continue to accrue during such a time of crisis.

Workers’ Compensation Insurance:

Workers’ Compensation Insurance is absolutely necessary if you plan to have employees. Without it, you would be responsible for the medical expenses that arise from injuries sustained by your employees while working. Mistakenly, many business owners believe that they only need workers’ compensation insurance if they are employers of “dangerous” workers (construction workers, electricians, etc.) or if their employees work at a commercial office or retail location (somewhere other than their home).

These types of insurance will help ensure that you are prepared for any type of accident, disaster or crisis that may come your way as a business owner. By preparing yourself, you will save yourself and your company from significant financial loss in the end.

Business Insurance

There are, as most of us are aware, myriad types of insurance to consider when thinking of what type is right for your particular business, some, of course, being more important than others.

Some common forms of business insurance include:

1. Worker’s compensation
2. Malpractice and errors and omissions coverage
3. Disability insurance
4. Liability insurance that covers premises, activities, and products
5. Business interruption insurance
6. Unemployment insuance
7. Surety and performance bonds

One particularly important type of insurance is Worker’s Compensation; any business that has employees is required by law – in every state – to have Worker’s Compensation coverage; this type of insurance will benefit an employee who becomes injured on the job while performing the requirements of his or her position. In most states, Worker’s Compensation insurance is available through private insurance companies, but in a few, the coverage must be purchased through an agency of the state’s government. Oftentimes, there are contractual requirements that mean businesses must carry certain types of insurance. You will need to personally find out what the requirement of your state is.

Disability insurance and unemployment insurance are also types of coverages that are required by law. Each state, of course, will have varying requirements, so it is best to check with your insurance company or government office to determine your business’s exact needs when it comes to these required coverages.

When entering into a contract or lease, your business should carefully review them for any insurance requirements; if a business borrows money, it is often required that insurance must be maintained in an amount sufficient to cover office equipment leases, property, and liability exposures. Should you fail to acquire the necessary amount of insurance, your contract or lease could be terminated.

It is generally advisable that businesses purchase liability insurance to cover any business-related activity and be specifically tailored to the type of business you’re conducting. Professionals who are likely to face greater levels of legal liability, such as architects, engineers, dentists, and healthcare workers are especially advised to obtain business liability, or malpractice, insurance.

Whether or not you need a particular type of insurance will depend on the activities of your business as well as the amount of liability exposure that your particular company is likely to have. It is always best to contact your business’s insurance company or a local provider of insurance to assure you have all the coverage you need.