A recent survey by Harris Interactive for America’s Health Insurance Plans (AHIP) found that most Baby Boomers underestimate their risk of missing work for an extended period of time due to a disability. Yet they believe that they are more likely to suffer such a disability than to die prematurely. What’s wrong with this picture? Like most breadwinners, Boomers buy family health insurance and life insurance to protect their families while skimping on long-term disability insurance.

How far off are the disability risk guesstimates of most Americans? A study sponsored by the Life and Health Insurance Foundation for Education called “The Real Risk of Disability in the United States” found that a white-collar worker between 35 and 65 years of age has a 27 to 31 percent chance of becoming disabled for 90 days or longer. Unfortunately, the duration of disabilities has increased substantially in the past few decades. In the 1970s and 80s, a 35-year-old male with such a disability would have been out of work, on average, almost four years. Today it’s six, because better medical care means that people with terminal illnesses are living longer. It does not, however, mean they are able to pull in their pre-disability income while they’re ill.

Steven Crawford, a Maryland-based disability insurance specialist, believes that a well considered policy is the keystone to any sound financial plan. Unfortunately, he notes, most financial advisers, not to mention the media at large, rarely mention the subject, even though a person’s ability to generate income is by far their most valuable asset.

“Everybody should have the maximum [benefits] they can afford,” Crawford says. “Somebody 20 years oldtheir liability is huge. A 55-year-old’s liability is less.”

Figuring out how to find quality, low cost health insurance suited to your specific needs is a time-consuming process. First, you have to determine how much you’ll need to maintain your lifestyle, remembering to factor in new expenses that could arise due to your disability. Then, you calculate what income you’ll receive from sources beyond a private health insurance plan. These include benefits from your employer’s group plan, your personal savings, and possible government benefits such as social security disability insurance.

“If you’re making a six-figure income, you really shouldn’t be covered by a group long-term plan,” Crawford says. The coverage is cheap, but you’re not going to receive nearly enough of your pre-disability income to sustain your current lifestyle. Sixty percent is the standard rate of income replacement on most plans. Why not higher? According to Crawford, the insurers want to pay “the maximum amount needed for you to get by without removing your incentive to go back to work.”

The subject is unpleasant for many, which may explain why so many people think of injury when they hear the word “disability.” In fact, according to AHIP’s Guide to Individual Disability Income Insurance (www.cap.org/apps/docs/insurance_programs/AHIP_Guide_Individual_Disability.pdf), 89.5 percent of claims are caused not by injury, but by illness. The guide is a great source of information about the many types of policies out there and the enormous variety of choices within each and every one of those policies. It also contains a checklist of questions to ask a reputable, knowledgeable agent when you’re ready to face the realities of your disability insurance needs.



By: Ryan Patterson

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The type of American health insurance you get will all depend on your specific situation and capabilities. Insurance for American families can differ with income bracket, employers, and many other types of issues. This type of insurance is not always just for Americans and Americans living abroad in the armed services. For those who are in the U.S. from other countries and have applied for the immigration process, American family insurance is available for them as well.

The Types Of American Family Health Care Plans

There are several types of plans available today. The most common and popular are HMOs and PPOs. These can either be purchased at a lower rate through one’s employer or privately for those whose employers do not offer benefits or the self-employed.

American family HMO insurence plans offer customers a set monthly fee for service through their general practitioner and all medical treatment that practitioner refers the customer for within the network set up by the insurance company. You will be able to go see your doctor for treatment and check-ups with no deductible and a small co-pay.

Some HMOs insurence plans offer an indemnity-type option known as a POS plan. In this type of HMO, a POS plan, members can refer themselves outside the plan and still get some coverage. If your personal doctor refers you to a doctor out side of the network you will be fully covered by the plan.

American family PPO insurance plans are for those who would like to pay a lower monthly fee and have more freedom in practitioner choices. Your general practitioner will be in the network provided by your insurance company, but referrals can be outside of your network when appropriate. Customers will also have to meet a deductible each year as well as a co-pay with each visit.

American Family Health Insurance For Families In Need

If you are in need of insurance for your family but are unemployed or at a low-income bracket, you will might qualify for American family insurance through the government. This type of insurance will ensure that you and your family will get the medical treatment you need when you need it at little to no cost to you if you qualify. Medicaid and Medicare are health insurance plans designed to help those in need as well as the elderly and disabled. To find out more about these American family insurance options contact your local federal government agent or Department of Human Services. They will be able to tell you if you qualify and what benefits you are entitled to.



By: Mike Singh

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