Long And Short Term Disability Insurance The Difference

December 11, 2011 By

Long term disability insuranceLong term disability insurance is a critical part of protecting cash flow for today’s workers. For those people who still work without income from a pension or social security, then long term disability is the financial protection that will keep the roof over your head if you are injured of fall ill outside of work.

A long term disability insurance plan is designed to pay a specific monthly income to those people who are injured or who become sick outside of work. Policies come in varying lengths that range from a year or may cover an individual until the legal retirement age. The goal of long term disability insurance is to help protect long term earnings. This is because income is replaced by policy payments in the event of a loss.

Long Term Disability Insurance-How Do I Know If I Need This Insurance?

There are a lot of different types of insurance coverages out there for people to wade through. To determine if you need disability insurance for the long term, then ask yourself the simple question. If I become injured or fall ill, where will the money come from to pay my bills? If you are like many people these days, the answer to that question is from nowhere. If you need your pay check to pay your bills then you need long term disability insurance.

People prepare for treatment of illness or injury though health insurance. Sadly, many people do not prepare for the financial burden the accompanies an injury or illness. Even sadder is the realization that when to compared to health insurance, disability insurance is really inexpensive.

Long Term Disability Insurance-Taxation:


In the past, many employers offered a disability insurance to workers as part of their benefit package. In today’s economy, many of those benefits are gone. Even if your employer still offers you a disability insurance package, the benefit if paid out is taxable. On the other hand, privately held disability insurance payouts are not taxable as income. In situations where payments are received long term, taxation could add to your financial burdens if, at the end of the year, you are suddenly liable for taxes on disability payouts.

Long Term Disability Insurance-Difference between Short and Long Term Policies:

Short term disability insuranceTo begin with long term and short term disability policies should go hand in hand. Short term disability insurance works with existing vacation that has been accrued. Short term disability insurance payments are not consistent either. They tend to reduce in payment amount as the claim ages. End payments can be as low as 60 percent of earnings. The life of a short term disability insurance case is usually six months. After that time period expires the long term insurance kicks in to effect. The most important difference between short term and long term insurance for disabilities is the period of time for one or the other to become active. Long term disability usually has a six month wait period or a clause that begins when a short term policy expires. Both long term and short term disability insurance policies are important for the financial protection of anyone who is injured or who may be come ill.

Long term disability insurance pays a consistent amount until the claim expires or the patient recovers enough to begin working again. This perhaps one of the most arguably important insurance policies that people can purchase. This is because the medical community has done such a wonderful job in advancing treatment for many diseases that used to be fatal. The downside to the advancement in medicine is that the recovery time for many illnesses or diseases is quite a bit longer. This means that those people who are afflicted but cured of a disease or illness will likely take a very long time to recover.

Long term or short term disability insurance policies are designed to help protect the financial security of people who are not ready or who may not quality for retirement payments, pensions or social security. Both types of policies should work in conjunction with other types of insurance such as health insurance to cover catastrophic situations that may occur. The cost of disability insurance is significantly lower than health insurance premiums and the benefit is well worth the cost if a claim should need to be filed.


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Health Insurance For The Self Employed

November 16, 2011 By
Health Insurance

Individuals who accept the risk and become a self employed entrapunare face the added burden of losing the benefits associated with being part of a larger company. Those peole may want to looking the options available for health insurance for self employed people. There are options available that include maintaining a COBRA coverage or begininning a new individual or famly policy. The details of these options are explained below.

Health Insurance For Self Employed- COBRA:


In 1985 the Consolidated Omnibus Budget Reconciliation Act (COBRA) was passed into law. This act outlines the employers responsibility and employee rights to continued health insurance coverage anytime there is a separation of the employment relaitonship. COBRA benefits are offered for up to 18 months, and continues the coverage of the spouse, dependents and the individual who were originally covered under the original policy. Extended time frames are allowed for special circumstances. This is sometimes a good option for individuals who need health insurance for self employed. Keep in mind that this does not need to be an arangement that goes for the duration. It should be used as a means of providing coverage until a more permanent solution can be found. COBRA is more expensive then the employer based policy with identical coverage. This is because the employee group receives a discount based on volume.

Health Insurance For Self Employed- Individual Plans:

Health insurance for self employed people typically means an individual plan or in some cases a family plan. This should be the “temporary” long-term solution that many people find. We say temporary because it is in hopes that the new self employed person will eventually grow into a small company where benefits may be offered as a group. This could help save money in the long-term.
Individual insurance plans are offered by every health insurance provider. Plans are divided up by deductibles. There is also a division between types of individual insurance plans. HMO, and PPO are to of the most common insurance types that are offered by insurance companies. HMO type policies are often less expensive but may be restrictive when it comes to choosing healthcare providers. Not all physcians or medical offices accept HMO insurance policies. The co-pay may be slightly higher with an HMO plan as well. These plans work well fo those of us in good health. They allow access to medical treatment and provide a good selection of preventitive care. If you are not fussy about your doctor then the limiting choices offered by this type of plan can be an asset as it will provide health insurance for self employed people at a dicounted price. The PPO type policy is very much a better policy in that it allows the individual to hand pick their doctors and specialists. The trade off is higher premiums and usually higher copayments but there are a wide assortment of levels of plans available to the individual. Plans can be rich in benefits or sparce depending on the needs of the person being insured. These plans work well for people who may be very active and may potentially want to see a specialized specialist of thier chosing. The vision of the marathon athlete comes to mind when you think about a PPO plan. The person is very fit and healthy but injuries may need to be treated by a specific type of specialist. HMO on the otherhand offers its reduction in premium and fits the needs of those who are pre-medicare. Generalizations to be sure but the benefits of each plan fits into those life styles.

Health Insurance For Self Employed-Pre-Existing Conditions:


Health Insurance For The Self Employed

Individuals who have a pre-existing condition should really consider the options available to them by weighing the possibility of losing health insurance completely. Not all states require insurance companies to insure every single person and in cases where there are pre-existing conditions, the cost of premiums can be staggering. Health insurance for self employed person with a pre-existing condition should be thoroughly researched for both cost and availability. This is especially true when one considers that COBRA coverage typically only lasts for 18 months.
Guaranteed Issue States: Some states are considered “guaranteed states” in that they have passed laws that demand that insurance companies provide coverage to everyone. The problem is that rates are not regulated so companies can make it impossible for those who suffer from significant illness or disease to afford health insurance.
Health Insurance Risk Pool: Historically, states have offered insurance to those people denied insurance due to pre-existing conditions. Some of those programs were sucessful and others were not. A great deal of success of failure was based on the state in which the individual lived. Today, there is the Patient Protection and Affordable Care Act which is a Risk pool that is federally managed. Still pretty new though to say whether or not it is working of not. This is also an option for health insurance for self employed individuals.

Health Insurance For Self Employed- Conclusion:

Determining the health insurance options available to individuals who may become self employed, should be part of the process of determining whether or not to become self employed. Consideration should be paid to COBRA rates, avaialbe individual health insurance plans, pre-existing conditions, and the rates the consumer may expect to pay for providing their own health insurance. Health insurance can be confusing for the average consumer to sort through and compare. It is a good idea to think ahead to healthcare needs that you or your family may have. A good example of a future medical need would be children and orthodontic care. A good first step for anyone who thinks they may want to be self employed is to check out all the facts about health insurance in your area and state. Take the time to do the research ahead of time so that in the even you need health insurance you and your family are covered. Interview several brokers if you have questions about coverages in your state.


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Best Dental Insurance – Plans And Coverage

October 17, 2011 By
Best Dental Insurance

It would be difficult to label any one type of dental insurance as the best dental insurance for everyone. This is because the needs of each individual patient is different from the needs of every other dental patient. The best solution for answering this question is to compare all of the dental insurance plan types available and see which plan bests meets your needs.

Best Dental Insurance – Types:

There are three basic types of dental insurance available to the general public. They are all different in how they approach dental care and what they may provide for coverage. Those dental plans are a PPO, HMO and a Discount Dental Service.


PPO is usually the most expensive in terms of rates. It is also a popular plan because it allows dental patient to choose their own providers. This is important because not all dentists are the same. Many people have a fear of going to the dentist, and when that fear is real, finding a dentist that works for the patient is important. The PPO insurance plan usually has several options for orthodontic insurance coverage.

HMO: This is usually the least expensive of the two types of traditional insurance (HMO and PPO), but it is restrictive in how much it pays for services and dental patients must choose their dental providers based on a list of providers contracted with the plan. Not all dentist accept HMO dental insurance. The HMO dental plan usually have several options available for Orthodontic Insurance plans, though again patients may have to pay more for this service both in terms of premiums and in terms of how much the HMO plan actually covers.

The Discount Dental Service is a cooperative plan that has limited services and is usually paid as a one-time-fee. The balance of services are paid for by the patient. This can be a good plan for people if their teeth are in good health and they only require basic dental service throughout the year. These types of plans usually do not cover major dental work and are not usually considered a top pick for orthodontic insurance.

Of the three types of dental insurance listed above the best dental insurance is the one that fits your needs as a patient.


Best Dental Insurance – Rates:

Dental Insurance

Like most insurance policies, certain factors affect the rate that a company may charge for dental and orthodontic insurance. PPO plans usually cost the most but they offset the cost of premium by offering more to the patient. Another consideration of cost are co-payments. It is important to compare the co-payment and other out of pocket expenses that the patient will be required to pay for receiving services. Free services are also an important consideration. Many plans offer free preventative maintenance such as cleanings or once a year X-rays.

Consideration should also be give for discounts that may be offered by the dental provider. Is there a discount of family plans verses individual plans? Is there a discount for people who do not use tobacco products? There are sometimes discounts available for other reasons, as well.

Is there a waiting period before care can begin? Sometimes dental insurance companies make new patients wait a certain amount of time before services will begin. This is to prevent people who have an emergency or pending dental work sign up for insurance, have the procedures and then cancel their plans. Orthodontic care may also be restricted to children under a certain age.

HMO plans can cost less than the PPO plans, but that cost savings comes with a price. The patient is not only limited by which provider they can see, they are also expected to pay more out-of-pocket expenses and potentially higher deductibles. The preventative services may also be reduced but these HMO plans may be the best dental insurance for your needs.

The cooperative plans are based on a flat fee but are also very limited in what they provide. Do not expect to receive orthodontic insurance though a cooperative plan. That is not to say that there are not cooperative plans that offer orthodontics, it is to say that they are rare.

Best Dental Insurance- Considerations:

Orthodontic Insurance

As the work and job benefits continue to shrink, some companies are eliminating dental coverage or are expecting employees to pay a much larger share of the costs. For those people who are cost effective in their thinking, there comes a point when it is cheaper to buy your own dental insurance. Things to consider when making that decision are cost and service. Though another consideration should be looked at, and that is discounts on taxation. Can the premium of dental insurance be written off of yearly tax as a medical expense, etc?

Determining the best dental insurance is a matter of cost and services. Services can be thought about in two ways. The first is how many services are you paying for or how many services are provided for the cost. The second is how many services will you anticipate that you may need in a calendar year. If you know you may need a $1700 bridge, then maybe it is more cost effective to pay a higher premium and a smaller deductible. Think about the types of services that will be needed before they are needed. This thought along, will help to analyze cost and cost effectiveness of dental plans available to the patient. Sometimes the most expensive plan is the best options. Fortunately, there are many plans available for patients to consider. Make a habit of shopping around for quality insurance plans that fit your needs as a dental patient.


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