Why You Need A Private Disability Income Policy

 

 

 

 

 

Why You Need A Private Disability Income Policy

You know that you need a backup plan for the possibility that you could become disabled and unable to work. You need a way to bring in that lost income so that you can continue to pay your bills and take care of your family. This is known as disability income insurance, and you may already have some form of this coverage included as part of your benefits at work. Unfortunately, if you are relying on this coverage to get you through a serious disability, you may find yourself out of luck.

Verify Your Coverage

You need to know exactly what is covered and what is not in your benefits package. Take the time to talk to your HR department and ask for a copy of the policy. You need to look for a couple of things: short-term and long-term disability coverage, and what percentage of your salary will be paid out while disabled. Finally, you need to know how long the benefits last before running out and leaving you on your own.

Odds are when you look at this policy with a critical eye you will quickly realize that it's really not enough. If you were to face a serious long-term disability, most employer provided disability policies would not be enough to get you through. If this is the case, you need to consider a private policy.

Why It's Worth The Cost

Very few of us have enough savings put aside to keep us afloat for very long if we were unable to work. That is why disability insurance exists. A disability income policy is designed to pay your salary when you are unable to work, and a private policy almost always provides better and more comprehensive coverage than those provided by employers. In many cases, employer provided policies give you only a certain percentage of your salary and last for a limited period of time.

While a private policy will also have limitations, you are free to choose the policy that provides you with the best level of coverage possible and the most peace of mind. You can also extend your benefits beyond the employer-provided policy and ensure that you can get the longest possible time to recover and get back on your feet. The monthly premiums on a private policy are well worth the peace of mind.

Disability income insurance is a policy no one should be without; the loss of your income could leave your family devastated. Be prepared by taking the time to look over your current benefits and talking to your insurance agent about how to increase them.

 

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FEMA Responds to Florida’s Flood Rate Request, Sort Of

 

By Amy O' Connor | February 17, 2016

The Federal Emergency Management Agency (FEMA) has responded to Florida’s request to review the National Flood Insurance Program (NFIP) rates but it may not be as forthcoming and helpful as Florida officials had hoped.

In a letter dated Dec. 29, 2015 (see below), FEMA Deputy Associate Administrator for Federal Insurance and Mitigation Roy E. Wright acknowledged Florida Insurance Commissioner Kevin McCarty’s October, 2015 letter in which he asked FEMA to provide ratemaking data as it pertains to Florida to determine if the rates are “excessive, inadequate, or unfairly discriminatory.”

“FEMA is committed to ensuring its rate setting practices are fair, equitable, and transparent, and we appreciate your interest in supporting us in our efforts,” the letter to McCarty states.

Wright’s letter mentions a phone call discussion with FEMA staff and McCarty on Dec. 21, that included two of FEMA’s actuaries.

“We appreciate the collegial tone of that discussion and look forward to continue working with you in this effort,” Wright wrote. “As we mentioned during that phone call, FEMA is constantly reviewing and refining its rate-setting methodology and works to increase the transparency of that methodology.”

The letter outlines how FEMA has tried to increase the transparency of the rate-setting process, specifically since the passage of the Biggert-Waters Flood Insurance Reform Act of 2012. Wright also directed OIR to a June 2015 independent evaluation from the National Academy of Sciences that it says “provides a strong foundation as we continue to evaluate and improve our rate setting.”

Wright concluded FEMA’s response by saying that the agency is in its first steps of its efforts to “increase transparency and ensure our rates are fair and equitable.” Wright said he welcomed further discussions with McCarty on NFIP rate setting after McCarty has viewed the report.

The response from FEMA, however, does not provide the rate information Florida lawmakers are looking for to ease the expense of the Florida flood insurance marketplace.

“The response they sent basically says ‘we will eventually comply maybe someday,’” said Florida State Senator Jeff Brandes, who has been leading the charge, along with McCarty, to offer more affordable flood insurance options in Florida. “I am at a loss for why it is so hard for them to say either yes or no…The data is available.”

OIR said it is continuing discussions with NFIP on the issue. Brandes said he and other state lawmakers will allow some time to go by to see what FEMA’s next response is.

Brandes is confident that these discussions will move forward despite McCarty’s planned exit on May 2.

“OIR has made it very clear that this one of their highest priorities,” he said. “I think the next commissioner will absolutely continue to work for fairness for the Florida flood insurance market.”

 

Sahred from Insurance Journal