As mentioned, pay attention to the Non-Evidence Maximum (NEM). This is the maximum amount of disability benefit you would be entitled to without providing medical evidence. You may be eligible to receive higher coverage if you take a medical examination and complete an application as explained above.
Be aware that LTD benefits are usually offset (reduced), by any disability benefits you might receive from CPP/QPP or Workmen's Compensation. Any benefits paid as a result of an accident from an automobile insurance plan may also reduce your LTD benefits.
If the LTD premium is paid by you personally then the benefit will be received tax free.
In groups where the employer pays the LTD premium, then the benefit when received will be taxable. Should this be the case, make sure you discuss with your employer or insurer what your options are for having tax withheld if disabled so there will be no nasty surprises come tax time.
As you can see, there are many options and details to review when it comes to Disability Insurance Planning for working professionals and business owners. It may be time to dig up your coverage and have a review to ensure you have a clear understanding of the definitions in your current program and what alternatives may be available.Many will go through life insuring what is so important to them. I'm sure you can name some of them: Auto/Home/Boat/jewelry/computers/business/etc. At claim time you expect them to perform and get a replacement or to at least put you back to where you were. In order to have these things that you love, you have to produce an income. This is important because income is required in order to have everything else, including supporting your family. However people take it for granted. How will you maintain your family's current standard of living if you become too sick or hurt to work? If you do not protect your income, you could lose everything.
Statistically, sixty-two percent of bankruptcies in America are due to medical bankruptcies. Yet three-quarters of them had health insurance at the time of the onset of the illness*. So if they all had health insurance, was health insurance the root of the problem?
No.
Sure medical bills piled up beyond affordability. Most people will blame the health insurance for the cause. This is partly because we are too much in the habit of treating the symptom of the problem verse getting to the root of the problem.
If you had income coming in on a monthly basis so you can go for treatment, would that help manage the medical bills piling up? Of course it would. What is your plan to make sure you have income once you are too sick or hurt to work?
If you had a choice, would you leave work to focus on your health or would you continue to work while receiving treatment?
I think that choice is obvious.
Let's dig deeper... what if you are forced to take a leave of absence to focus on your health and your life depended on it? Would you continue to work anyways? Chances are you would take time off. No amount money is that important when your life is at stake. Or is it?
No comments:
Post a Comment