If You Cannot Work Will You Still Get Paid?


Confused 1Today I got invited to join two training seminars on Friday about Disability Income insurance.  Although I already feel comfortable talking about Disability Income insurance, I have learned that I can never know everything.

Over time laws and policies change.  It is highly unusual for me to sell in 2013 the same policies I sold in 1987.  Fortunately, the internet allows me to stay informed on changes in the insurance industry.

It is through these webinars and my other news sources that I am able to find material for my weekly educational email.  I use the weekly emails as a way to stay in touch with my clients.  I am under no delusion that people want to be bothered by their insurance agent over the phone on a regular basis.  However, neither do they want an insurance agent who sales them something and then is never to be found again.

When someone buys a product from The Insurance Barn they are automatically added to the weekly email list.  The understanding is that if they find the information in the weekly email interesting and useful, they are able to educate themselves.  If they do not find any interest in the information, they can just delete that email and go on with their business.

Whatever they elect to do, they will always know who to call when they have an insurance question.

The weekly emails for 2013 have anticipated the national Open Enrollment into the mandated Essential Benefit Plans.  Although the weekly emails are written with my clients in mind, if you would like to get them each week, click on the banner below.

Until the Department of Health and Human Services releases details about the new health exchanges in late August,  the news about the national Open Enrollment is primarily speculation.

However, as details about the new exchanges come out, I will be using the weekly newsletter to keep people informed on what they must do, when they must do it and how they can go about fulfilling their part of the PPACA’s Individual Mandate.

Weekly Email 1

In this post, however, I want to answer the question, “If I get hurt and cannot work, will I still get paid?”

That question has been asked since the early part of the 20th century.  A couple of decades before “Health Insurance” as we know it today, labor unions developed a system of paying a worker’s bills while he was laid up and could not earn a paycheck.  The idea was that neither a worker, nor his family, had to settle for a worse life-style simply because he was in the wrong place at the wrong time and got hurt.

Today, not much has changed.  People still ask, “If I get injured so that I cannot work, will I still get paid?”  The answer to that question is different for many people.

BUSINESS OWNERS

If you own and operate a business that employs others to do the work, it is likely that your salary will continue if you are injured or become ill and are unable to go into the office.

However, the business must continue even if you are not able to go into the office.  A Business Overhead Disability policy would provide enough money to keep the office open and meet payroll until you are able to return to work.

If you have skills that are required for your business or have no employees, it is likely that your income will stop if you get injured or become ill.  If that is the case, you are the Key Person in your business.  You should consider a Key Person Disability Income policy to replace your income while you recoup.

EMPLOYEES 

Many employers, especially, large companies, provide Disability Income to their employees as part of their benefit package.  If they suffer a non-work related accident or illness that prevents them from working for an extended period of time, they will still get, at least, a partial income.

Other employees are not as fortunate.  Many people work for companies that do not offer Disability Income insurance.  If that is true for you, I highly recommend that you stop reading this post right now and contact your insurance agent.

Unless you have enough money in your Rainy Day fund to allow you to pay your bills until Social Security Disability Insurance kicks in (6 months after a disability starts, at the earliest), you need some form of Disability Income insurance.

I realize that money is hard to earn.  There is a good chance that even more will be required of you under the coming Health Reform rules.

I understand that, however, I am still convinced that Disability Income insurance, for someone who lives from paycheck to paycheck, is just as important as the Major Medical insurance that the government is about to mandate for all Americans.

Yes, if you get sick or injured in the future, the doctors and hospitals need to be paid.  However, those are not the only bills you will be responsible for.  Your mortgage, car payment, utilities and groceries still have to be paid for.  Obamacare’s Essential Benefit Plans are there not to protect you but to protect the doctors and hospitals.  If you want insurance to protect you, you need to supplement your health insurance portfolio with Disability Income insurance.

Many people balk when they see how much Long Term Disability Insurance costs.  It is true that something that will secure your paycheck until you are 65 is quite expensive.

It is also true that you have at least two less expensive options.  You can get a comprehensive Disability Income insurance plan with a benefit period of less than 2 years, called a “Short Term Disability Income” insurance policy.  They are much less expensive and typically work very well in coordination with Social Security Disability Income.

Your other option would be a Disability Income plan that is more limited.  Accident Disability Income insurance only pays a benefit if you are injured while you are not at work.

Since Accident Disability Income insurance does not pay while you are out of work while you are recovering from an illness, like cancer, heart attack or stroke, I do not recommend this type of insurance unless it is all you can afford.

If you elect to trust Accident Disability Income insurance, I strongly urge you to also consider getting a Critical Illness insurance policy to create a Rainy Day fund if you do get ill from one of the Critical Diseases that are covered.

Building A Health Insurance Portfolio

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