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.

 

www.lehnandvogt.com

9416988877

 

 

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

Option to increased Flood Rates.

 The Flood Insurance Agency’s (TFIA) Private Market Flood™ announces option to purchase two-year or three-year prepaid policies to lock in current premiums and avoid annual rate increases.

Over 528,000 properties have dropped their flood insurance coverage since the Biggert-Waters Flood Insurance Reform Act of 2012 was passed. FEMA’s total policy count has decreased from 5,620,017 policies to just 5,091,608 as of November 2015. That is an average of 500 properties giving up their flood insurance protection every day.

On April 1, 2016 many of the remaining policies will see 25% premium increases, with every policy experiencing some rate increase. Insurance companies will begin mailing renewal bills reflecting these higher costs next week.

TFIA’s Private Market Flood program’s answer to ever-increasing annual flood insurance premiums is an option to pay $1 and two years premium, up front, for a two-year policy term, guaranteeing no increase for the second year of the policy. There is also an option to pay $2 and pre-pay three years premium to lock in the rate for three years. Beginning next week, the prepaid option will be presented to both new and existing customers.

Evan Hecht, CEO of TFIA, said: “Consumers should be proactive, far in advance of an expiring flood insurance policy, when seeking alternatives to rising FEMA flood insurance premiums. If a lender uses mortgage escrow funds to pay a renewal premium, including those premiums increased substantially, any time before the existing NFIP policy expires, policyholders are unable to cancel the renewal policy and replace it with a private policy. This is the case even if the renewal policy does not become effective for another two months. Insurance companies mail the renewal bills to the lender 60 days prior to expiration. Once paid, the insured is held hostage by FEMA and cannot take advantage of lower premiums in the private market. Homeowners looking to switch to the lower cost Private Market Flood insurance need to act early and demand their lender not pay their current FEMA flood insurance renewal premium notice. Once a lender pays the renewal premium, it is too late.”

What is FIGA?

March 26, 2013

inShare

The Florida Insurance Guaranty Association (FIGA) is a non-profit organization created to help protect policyholders in the event their insurance company becomes insolvent and is liquidated.

Property and casualty insurance companies are required to join the insurance guarantee associations in the states in which they are licensed to do business; Tower Hill Insurance is a member of FIGA.

It is especially important to do your research before you purchase an insurance policy to be certain that the company you are considering is financially strong and stable. If an insurance carrier is ordered into liquidation, the company no longer has any financial obligation to its customers. FIGA then steps in to assist the failed insurer’s customers by settling both new and outstanding claims; $300,000 is the standard claims limit for FIGA.

If your home’s value exceeds the maximum $300,000 amount that FIGA is obligated to pay for a claim, then you are responsible for the remaining cost to rebuild or repair your home. Depending on the amount your home or property is insured for, the gap between FIGA’s limit and the amount of coverage included in the policy originally purchased could be significant.

Because FIGA is a non-profit organization, it is primarily funded by assessing fees to the insurance industry. FIGA bases these assessments on a percentage of insurance premiums that each company receives from its customers.

Typically, Tower Hill is assessed a fee by FIGA, which we pay directly to them in advance of collecting monies from our customers. Then we recoup these funds — that we have already paid to FIGA — by collecting a percentage from each policyholder. On the declarations page at the front of your policy documents, this percentage fee is noted as a recoupment.

In December 2012, Florida property and casualty companies were assessed nine-tenths of one percent (0.9%) of the premiums collected from customers during calendar year 2011. Accordingly, a FIGA Recoupment Fee 2012 will be included on new and renewal Tower Hill policies that are effective March 15, 2013, or later. The fee varies slightly by insurance company and policy type.

To learn more about the Florida Insurance Guaranty Association and how this non-profit works to protect our state’s insurance customers, please visit the FIGA website.

 

Shared From Tower Hill Insurance  www.thig.com

 

www.lehnandvogt.com

 

Commercial Truck Insurance

Protect your business in three easy steps

 

A business is only as safe as the tools it uses. One of the best tools a business can use to protect its assets is commercial auto insurance. 

Understanding insurance can be tricky. One of the first steps toward making an informed decision is to understand coverage and service options. Here are three easy steps to help figure out your commercial auto insurance needs:

1. Choose an insurer with the right combination of price and service. Insurance isn’t just about price. It’s about service, too. How are claims handled? How long will it take to get your vehicle back on the road? Can you get questions answered outside of business hours or online? Know the answers to these questions. Your time is money. 

2. Research your policy options. Having the right coverage is important. A standard commercial auto policy generally includes coverage for: 

•injuries or damage that you cause;

•your driver’s injuries;

•injuries and damages caused by uninsured or underinsured drivers; and

 

•damage to or theft of your vehicle(s).

 

When it comes to damage that you cause, you may be required to purchase certain limits based on who you work for. For instance, if you work for certain home builders, you may be required to carry $1 million in liability limits. Consider how much you are willing to pay out of pocket if your liability in an accident is more than your policy limits. 

3. Know how the policy is priced. You can control your insurance costs. To get the best rates, run motor vehicle reports on potential drivers. If you let your insurance lapse, you’ll probably pay more for your next policy. Ask about discounts, including paid-in-full and renewal discounts.

 

Just like your customers rely on your professional skills, call a professional independent insurance agent who will be in your corner, researching and recommending the best options.

“Commercial auto insurance is complicated, but it is vital to protecting your livelihood,” says Bill Kampf with The Progressive Group of Insurance Companies, one of the largest commercial auto insurers in the country.

 

For more information about commercial auto insurance, visit www.lehnandvogt.com

Lehn & Vogt Insurance

2980 S McCall Rd

Suite E

Englewood, FL 34224

941-698-8877

 

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