Two topics for today
Several Interest Rate updates to add
several new interest rates for various terms of product have just been added. These are guaranteed rates for the full term. Contribution minimums apply, and early withdrawal rules also apply.
4 year term 5.0% per year
6 year term 5.3% per year
Disability Risk and how to pay for it
I just came across a recent summary of a study sponsored by the Life foundation.
Long Term Disability is considered to be a disabling injury or illness making it impossible for a worker to work for a period of 90 days or longer. Short Term Disability is defined as an injury or illness making it impossible to work for a period of less than 90 days. between 35-40 % of workers have some form of short term disability coverage and only about 30% of companies employees have access to LTD coverage. Not all eligible employees have elected this coverage.
Out of 140 plus million employees in the US only about 5-6% have comprehensive Long Term Disability income policies in place through work or through private policy purchase of Long Term Disability (LTD) coverage. Many employees have coverage through Workers Compensation which will provide coverage for a work related injury but provides no benefit for illness or non work related injury. These facts mean that most employees have no protection or at best inadequate coverage for Disability risk.
Employers take note this is a desirable benefit. Providing coverage can actually help the company save money on their Workers Comp premium. Employees take note. tell your boss or HR department that you would be interested in a benefits package including some LTD coverage. Especially in a group setting this coverage is relatively modest in cost.
On a recent visit to a Hospital based Rehab facility visiting a family member I met several young patients one as young as 25 years old. They were not disabled due to a work place accident and therefore were not eligible for Workers Comp.
Policies are available to cover a period from 2 years, 5 years or up until the patient reaches age 65. One of our clients wanted coverage to age 65 but with his medical history we were able to get him coverage for a maximum of 5 years. Some occupations are difficult to get through underwriting. Occasionally by working with multiple carriers we can get coverage for hard to insure occupations.
www.columbusfinancialplanningpros.com
polarisfinancialservices@gmail.com
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