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Leave No One Behind

Tuesday, January 12, 2021
Leave No One Behind

There’s never been a year like 2020, and hopefully never will be again. Yet, through all the pain, suffering and anxiety COVID-19 caused, it brought many families to the dinner table to discuss their future and finances, and in ways never seen before.

And from this typist’s corner of the world, never had more people reached out to review their life insurance needs, as well as critical illness and long-term disability coverage. 

As we wrote a few months ago, insurance carriers responded, allowing for many applicants to apply with ease—typically online, and with no paramed exam required. This has really helped, not to mention some of the new wrinkles carriers have made available. 

One life insurance carrier now includes one percent of all death benefits paid to the insured’s charity of choice, while another allows for guaranteed issue conversion from term coverage to long-term care, all the way up to age 65.  However, the biggest advantage to-date has been two benefit items now offered from long-term disability carriers: family leave and catastrophic care. 

While catastrophic care virtually doubles one’s disability benefit should an insured become unable to independently walk, eat, bathe or dress, it’s the family leave benefit that’s really amped up the discussion.  Given the aging population era we’re in, this policy provision could be as vital and valuable as ever, as it pays a benefit should an insured stay home to care for a sick family member, regardless if the insured is disabled or not.  

And two key points to keep in mind:  

  • Provisions like these do not exist on group disability plans.  
  • Even if you have group disability from your employer, depending on your income level, it may be well below the usual 60% of pay disability normally covers.  

Remember that unless you’re an owner (or partner) of a business, your disability benefits, being employer-paid, will usually be taxable. This is even more reason to consider supplemental individual long-term disability, which, once written and approved, never changes premium, and stays with you for life, just like a family member choosing to stay home and care for a loved one. 

As Dorothy Gale once said: “there’s no place like home.” 

Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your legal or medical needs.