Update August 26- 2010 All About "Business Disability Insurance" By Insurance Experts

The main purpose of business disability insurance is to to replace an employer and employee's income should they be unable to work as a result of either an accident or a sickness. In fact, People tend not to spend a lot of time thinking about the financial devastation that could result from a disabling injury or sickness therefore if disability strikes, the balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality.
(Written By Kyle J. Norton)

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Disability Insurance 10 - Types of Disability Insurance
By Kyle J Norton


The main purpose of disability insurance is to to replace an individual's income should they be unable to work as a result of either an accident or a sickness. In this article, we will discuss type of disability insurance for business owners.
There are four types of business disability insurance:
1. Business Overhead Insurance.
The insurance helps to pay for the reimbursement of business expenses in case of disability of the insured. Since a business owner is responsible for a variety of fixed expenses. Some examples include rent, salaries of employees and utilities, if the business owner suffers a disability, these expenses continue, but the income-earning capacity of the business may be significantly reduced. This type of insurance provide owner with necessary funds to pay for all above expenses.
2.Disability Buy/Sell Policies
If there are several owners in the business the owners may enter into buy/sell agreements which will govern how the business is dealt with in the event one or more of the owners dies, becomes disabled or suffers a bankruptcy.
The disability buy/sell insurance is designed to assist healthy owners to fund the purchase of a disabled owner's share of the business.
In fact, The likelihood of a long-term disability affecting the business increases as the number of owners in that business increases.
3. Wage Loss Replacement Plans
Wage loss replacement plans are designed to provide the benefits of individual disability policies to key employees, while at the same time maximizing the tax benefits to both the employer and employee.
The policy may also provide that on the retirement or termination of the employee's service, the policy will be assigned to the employee and One benefit of grouping several individual disability policies is that the insurer may provide premium discounts when the same policyholder owns multiple policies.
4. Disability benefits under life Insurance Policies
Two main methods of providing disability income in life insurance policies are:
a)Waiver of premium
The insured will stop paying premium in the event the policy owner becomes disabled during the term of the policy.
b)Combination policies
A policy that is considered exempt allows the cash values in the plan to accumulate on a tax-deferred basis.
I hope this information will help. If you need more information of the above subject, please visit my home page.
Kyle J. Norton
http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
http://disabilityinsurance10.blogspot.com
All rights reserved. Any reproducing of this article must have all the links intact. I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990

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Article Source: http://EzineArticles.com/?expert=Kyle_J_Norton

Update August 10- 2010 All About "Business Disability Insurance" By Insurance Experts

The main purpose of business disability insurance is to to replace an employer and employee's income should they be unable to work as a result of either an accident or a sickness. In fact, People tend not to spend a lot of time thinking about the financial devastation that could result from a disabling injury or sickness therefore if disability strikes, the balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality.
(Written By Kyle J. Norton)

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Disability Insurance and Loss of Income
By Lance Winslow

If you run a small business you know that if something happens to you and you cannot work, you are history. Temporary Disability Insurance for your small business is a must. Often you do not even have a choice. You must buy it and if you do not then chances are the bank will not give you a loan to start your small business, reject your business plan or decide not to give you the money you need to expand.

Indeed, banks have check box forms they fill out to CYA themselves and prevent loan defaults. Disability Insurance and Loss of Income Insurance is a box on those forms. Even still, if you do not borrow money from a bank and use personal savings, you could lose your entire business or savings if you are injured or hurt and cannot work.

What if you need major medical treatment and it drains your bank account and you are out of work for a month? What about six months? Can your business survive without you? Chances are that it couldn't, as much as we might wish to think otherwise.

It is for all these reasons that when I found myself needing disability insurance, I consulted an expert on insurance to walk me through it all and explain to me what was covered and what is not covered. It pays to ask questions and listen to the experts.

I certainly hope this article is of interest and that is has propelled thought. The goal is simple; to help you in your quest to be the best in 2007. I thank you for reading my many articles on diverse subjects, which interest you.

"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/. Lance is an online writer in retirement.

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Update Junly 23- 2010 All About "Business Disability Insurance" By Insurance Experts

Business Disability Insurance 23 - Disability Insurance of Key Persons
By Kyle J Norton

The main purpose of business disability insurance is to to replace an employer and employee's income should they be unable to work as a result of either an accident or a sickness. In fact, People tend not to spend a lot of time thinking about the financial devastation that could result from a disabling injury or sickness therefore if disability strikes, the balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality.
(Written By Kyle J. Norton)

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Key Person Insurance is a type of disability insurance that provides the most affordable solution to all types of business.

A. Office overhead spend of key person disability insurance:
It is the insurance that reimburses the individual for actual business expenses incurred after the key person disability commences such as such as rent, staff salaries, business mortgage loan interest, depreciation or loan principal, and leased or rented equipment. Included would also be telephone, utilities, property taxes. and this kind of insurance generally have below figures
1. Waiting period: 30, 60, 90. 180 days are common.
2. Benefit in general is between $1,000 to $20,000+ and paid monthly.
3. Benefit period: 6 - 36 months.

B. Buy out key person disability insurance for Partnership and small corporation
As we mention in the other article, after a lengthy or permanent disability becomes apparent, buying the disabled party's business interest becomes increasingly important. because
1.The business may lose money and suffer
2. The survivors face increased difficulties and frustration.
3. The financial position of the disabled person will deteriorate and both sides fear loss of income and assets.
4. In the event of disability without insurance, the buy-out is left open to the uncertainties of chance and negotiation. In such cases, the seller will usually be under a lot of stress/distress. The best solution is required that the parties enter into a buy-sell agreement prior to the disability of the key person and it is funded by criss-cross agreement. Insurance companies will issue both personal disability policies and buy-out insurance on the same life payable on the same disability.

C. Advantages of key person disability insurance
The amount of the benefit provided to the disabled key persons are generally advantageous to the business as well as to the insured.
1. Premium paid to the insurance company can be included in the budget as a fixed expense.
2. The insurance policy automatically provides the funds at the time of greatest need.
3. The premium paid in generally is cheaper than any of the alternatives.

D. The following conditions will usually apply when insurance is used to provide the funding for the buy-out:
1. Third party insurance (owned by a partner or shareholder) must be issued for the agreed upon price and ownership is not transferable.
2. Usually the company needs to be in business for two years or more and show signs of profitability.
3. Financial statements of the business must be submitted prior to issue of the insurance.
4. Normally this type of disability insurance buy-out agreements insurance have a long waiting period of one to two years. The benefit, if monthly, may have a payout period of up to five years.

E. Paid out
There are 2 types of paid out:
1. Monthly Pay-out: the pay-out is paid in monthly installments for the guaranteed term
2. Lump Sum: the pay-out is paid in one large lump sum payment.

I hope this information will help. If you need more information of the above subject, please visit my home page at:

Kyle J. Norton
http://lifeanddisabitityinsuranceunderwriter.blogspot.com
http://businessinsurance23.blogspot.com

All rights reserved. Any reproducing of this article must have all the links intact. I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990

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Update Junly 06- 2010 All About "Business Disability Insurance" By Insurance Experts

The main purpose of business disability insurance is to to replace an employer and employee's income should they be unable to work as a result of either an accident or a sickness. In fact, People tend not to spend a lot of time thinking about the financial devastation that could result from a disabling injury or sickness therefore if disability strikes, the balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality.
(Written By Kyle J. Norton)

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Business Interruption Insurance Keeps Your Small Business Running During a Disaster

By James Cochran

It's a small-business-owner's worst nightmare: a fire or natural disaster wipes out your business' headquarters, leaving you and your team with no computers, no office equipment and nowhere to work. Although the right property insurance policy would cover the physical losses and damage to your small business, getting back to serving your customers will take additional time and money.

Thankfully, there's a special kind of insurance designed specifically to help your IT business stay afloat during the worst of times. Called "business interruption insurance," it's typically offered as part of the property insurance included in a Business Owner's Policy, or BOP.

What is business interruption insurance, and how do I know if I need it?

In the event of covered property damage claim at an insured business location, this type of insurance would compensate you for lost revenue resulting from the damage to your property, as estimated by a review of your financial records. This income would allow you to ensure that your ongoing overhead and employees' salaries are covered while your business gets back on its feet. For instance, you're covered for those bills that don't stop coming just because your business is temporarily shut down, such as utilities.

Any small business that could be forced to temporarily close as a result of unexpected losses from physical property damage could benefit from small business interruption insurance. You might also see this specific coverage referred to as "business income coverage," or "earnings insurance." You may also wish to consider extra expense insurance, which pays additional expenses you may incur to keep your business running at a temporary alternative location.

What would business interruption insurance compensate me for in the event of a business shutdown?

Most business interruption insurance policies cover two or three areas:

- Based on your financial records, profits you would have earned had your business not been forced to temporarily shut down.

- Operating expenses, including utilities, that you must pay even while your business is non-operational.

- Expenses related to relocating and operating from a temporary location during repairs (this "extra expense insurance" is not automatically included in all policies, so read the fine print).

What is considered a covered business interruption?

Any business shutdown due to a claim that is covered by your property damage insurance policy should be covered by business interruption insurance. Typically, this would include fire, theft, storm damage, as well as other insured perils specified in your policy. Read your policy carefully to determine if damage due to a flood or earthquake would be covered.

Additionally, if your business is broken into and critical equipment is stolen, or your facility is damaged or vandalized to the point that it's unusable, business interruption insurance may also apply. Keep in mind, there is usually a 48-hour waiting period before coverage begins.

How much business interruption coverage do I need?

Your agent or broker can help you determine the right amount of coverage. In general, the amount of coverage you need and the premium you'll pay will be proportionate to the amount of risk inherent in operating your business. For example, a small IT firm is at less risk of a claim for fire damage than an automotive repair business that stores flammable materials on-site. Another consideration is how quickly your business could relocate permanently or temporarily and resume operations.

Jim Cochran is the owner of Business Insurance Now, a provider of business interruption insurance quotes. Jim understands what needs businesses have during a disaster and can provide the necessary small business insurance coverage to keep them afloat.

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Update June 16- 2010 All About "Business Disability Insurance" By Insurance Experts

The main purpose of business disability insurance is to to replace an employer and employee's income should they be unable to work as a result of either an accident or a sickness. In fact, People tend not to spend a lot of time thinking about the financial devastation that could result from a disabling injury or sickness therefore if disability strikes, the balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality.
(Written By Kyle J. Norton)

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Why You Need a Disability Insurance Lawyer

By Ben Newman

One day, I once got into an accident at work which rendered me disabled. I was compensated for the accident that I got into and I was somehow left without work since it was the obvious reason that I got disabled. At first I thought the compensation was good enough but later on I realized that it was not really enough.

Good thing a buddy of mine, who knows someone who had the same problem, introduced me to a system that would assist me to be paid out fully with the aid of disability insurance attorney. This disability lawyer said she might help me considering the claims I will get after i was rendered disabled by the accident.

It was amazing because I got even more money. Certainly, it's great to have a good disability insurance attorney to assist you with these situations. In the beginning I thought it would be very complicated, and maybe not even worth the effort. I was wrong. At first, I thought that I could make it on my own. Never did I think that it was going to be that hard. That it why at first I settled for the compensation which the company gave me. So it was until I discovered disability lawyers.

A disability insurance attorney can help you quickly and efficiently. When you see how they do it, you will know that it will much more likely win you the case and get you paid well. Now, this is what everyone who gets disabled needs. When these things happen, I firmly suggest you get the services of a disability lawyer. You simply need to get the disability lawyer whom you can rely on. Take a quick look at the credentials and experience of the lawyer before you hire them.

Again, it always pays to get a good and expert disability lawyer. You do not want to settle for something less. So you go get a disability lawyer who would help you all throughout the process of winning your insurance claims over your disability. Do not be afraid to put your trust with a disability insurance attorney. I have put my trust in it once and it helped me a lot. I am pretty sure that it will help you too.

Finding a disability lawyer is essential if you have been disabled in an accident. There is no doubt you will not get what you deserve without a disability insurance attorney on your side.

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Update May 26 - 2010 All About "Business Disability Insurance" By Insurance Experts

The main purpose of business disability insurance is to to replace an employer and employee's income should they be unable to work as a result of either an accident or a sickness. In fact, People tend not to spend a lot of time thinking about the financial devastation that could result from a disabling injury or sickness therefore if disability strikes, the balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality.
(Written By Kyle J. Norton)

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Should a Small Business Owner Buy Disability Insurance?

By Jeff Pennington

If you were to suffer from a long-term injury or a debilitating illness, would your small business be able to survive without you? Would your savings and other assets be enough to cover your medical bills and other expenses? If not, you should consider a back-up plan. With disability insurance coverage, you can replace your income in the event you are injured in an accident.

Will Social Security Disability Cover My Income?

The disadvantage of relying on social security benefits is that it takes a very long time before you begin to receive benefits. Often times, social security claimants are declined from receiving benefits even if they are clearly disabled. Secondly, the payout is extremely low. With disability insurance, you can rest assured that your financial obligations will be take care of in case you are unable to fulfill them because of an injury.

1. Buy a non-cancellable policy. With a non-cancellation policy, your benefits and premiums are fixed. The only drawback is that it is a more expensive policy.
2. Guaranteed insurability. If you are worried about medical qualifying, this type of insurance is recommended.
3. Compare insurance carrier ratings. Comparing insurance provider ratings will help you determine which insurance carrier is financially fit.
4. Determine which disabilities are covered. Before investing in disability insurance, make sure you know what is covered within your insurance plan. Not all disabilities are covered.
5. Base your decision on benefits. Never base your decision to purchase insurance solely on the cost. Invest in the policy that offers the most benefits within your budget.

Why do you need Disability Insurance?

If you are a business owner, you have invested a lot of time and money in growing your business. It would be a devastating experience to lose your income because of an unexpected injury. The good news is you can prevent this from happening by investing in a good disability insurance policy.

Hello, I'm Jeff Pennington. In late 2002, I decided to create a business that would improve the way professionals buy disability insurance and term life insurance. I wanted to combine the friendliness and personal service that comes from a small insurance company, with the effectiveness of an online insurance business.

I work with multiple companies to find small business disability insurance that they can afford.

My technology based system is able to communicate electronically with our insurance carrier partners, enabling us to offer you a simpler, more streamlined disability insurance application process.

Update May 05 - 2010 All About "Business Disability Insurance" By Insurance Experts

The main purpose of business disability insurance is to to replace an employer and employee's income should they be unable to work as a result of either an accident or a sickness. In fact, People tend not to spend a lot of time thinking about the financial devastation that could result from a disabling injury or sickness therefore if disability strikes, the balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality.
(Written By Kyle J. Norton)

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Obtaining Disability Insurance

By Barry Wilsmiths

Disability insurance is a policy that supplements your income in the event of a disability that keeps you from working and earning an income. It gives you enough to take care of your financial needs until you are able to go back to work. There are great benefits of protecting your income against a disability. It is top on the list of the causes of home foreclosure and bankruptcy. There is a 20% chance of being unable to work for up to a year of your working years due to one form of disability or the other.

If you provide for yourself and have no other person (spouse or relation) to supplement your income in case of an emergency, then disability insurance is for you. A few months out of work can erode all your savings and make you end up deep in debt or even bankrupt. Social security disability would have been an option but it is very difficult to qualify for, and if you do, the amount you receive is very low compared to your previous income. You can try it, but don't depend on it.

The following are the steps to get disability insurance:

1. Do some research to find a few reputable insurance companies that carry disability insurance. Confirm their standing with the Better Business Bureau in your state. Contact their representatives and get quotes from them.

2. Decide on the company to buy your insurance from after comparing different quotes and terms. Ask for their application form. It could be sent to you via email (quicker) or by post.

3. The insurance company's medical examiner will contact you to set up a date for a physical examination to check your health. This is usually at no cost to you.

4. It takes about a month to six weeks for your application to be reviewed and you are issued your disability insurance policy.

You are given the first one month to decide to stick with the program or cancel.

To get a lot more Insurance Information check out Insurance Information Center.

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Update April 07 - 2010 All About "Business Disability Insurance" By Insurance Experts

The main purpose of business disability insurance is to to replace an employer and employee's income should they be unable to work as a result of either an accident or a sickness. In fact, People tend not to spend a lot of time thinking about the financial devastation that could result from a disabling injury or sickness therefore if disability strikes, the balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality.
(Written By Kyle J. Norton)

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Business Overhead Expense Insurance – Do I Need It

By Toby Lason

Personal disability insurance protects a physician's ability to earn income, but what protects his or her medical practice? Business overhead expenses are just as relentless for those who suffer a disability. A practice that relies on a small number of people (or one person) to produce revenue is economically vulnerable if one of those individuals becomes disabled. A business overhead expense ("BOE") disability policy will cover the ongoing operating expenses of your practice. It ensures that you do not have to use personal assets to pay for business expenses if you become disabled.

If the insured does become disabled, a BOE policy pays a monthly benefit based on business expenses, not anticipated profits. The following are some business overhead expenses that are covered by BOE insurance:

- Rent or Mortgage Payments

- Employee Salaries and Benefits

- Utility Bills

- Property Taxes

- Accounting Fees, Legal Fees, and Professional Dues

- Malpractice and Other Business Insurance Premiums

- Maintenance and Janitorial Services

- Depreciation

- Interest on Business Debts

- Office Supplies

- Other Fixed Expenses that are Ordinary, Necessary, and Tax Deductible

Some policies even cover the salary of a temporary employee hired to do the duties of the disabled. Income taxes, the cost of inventory, and the cost of furniture are a few expenses that are not covered.

There are several key areas in which BOE insurance differs from personal disability insurance.

Benefit Periods - Usually, BOE insurance policies have short benefit periods that do not exceed two years. Remember that BOE insurance is not protecting your ability to generate income--that is what a personal disability policy does. Instead, BOE insurance allows you to keep your practice open, or at least pay for its expenses until you recover. In the case of a long-term disability, it offers you up to two years to make a business decision, such as whether to shut down or liquidate your practice, without worrying about accruing debt from business expenses.

Maximum Benefits - Personal disability insurance pays a monthly benefit as defined in the policy. BOE insurance policies offer a maximum monthly benefit, but only pay the actual overhead expenses if they are less than the maximum benefit. For example, if the maximum monthly benefit is $1,000 but actual business overhead expenses are only $600, the benefit paid is $600. With some insurers, that unused $400 benefit can be applied to increase future monthly maximums or to extend the benefit period.

Taxation - As long as premiums for personal disability insurance are paid with after-tax dollars, the benefits are tax free. DOE insurance benefits are subject to income tax, but the premiums are tax deductible as a business expense.

One similarity that BOE insurance and personal disability insurance policies share is that the sooner you purchase a policy, the better. Not only will you get lower rates when you are younger and generally in better health, but additional coverage can be purchased later without providing further evidence of medical insurability.

BOE insurance is a great idea for small practices with several physicians. If one physician is disabled, their portion of business overhead expenses will be covered by the policy so the other physicians are still able to practice without an extra financial burden.

Your practice should allow you to earn income, not be a financial parasite if you become disabled. BOE insurance doesn't just protect your practice... it protects you.

Toby Lason is a freelance writer for http://www.doctordisability.com/business-overhead-expense.html>Doctor Disability Insurance

Update Mar. 16 - 2010 All About "Business Disability Insurance" By Insurance Experts

The main purpose of business disability insurance is to to replace an employer and employee's income should they be unable to work as a result of either an accident or a sickness. In fact, People tend not to spend a lot of time thinking about the financial devastation that could result from a disabling injury or sickness therefore if disability strikes, the balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality.
(Written By Kyle J. Norton)

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Disability Insurance For the Self Employed

By Michael Kortz

As a self-employed professional, your ability to wake up and go to work every day is your most valuable financial asset - your sole source of earning an income and providing for yourself and your family. Among the many benefits of being self-employed, there are also many additional responsibilities. Protecting your income is one of these additional responsibilities. People who are self-employed cannot rely on an employer to provide them this coverage and instead must do so themselves. Prior to purchasing Disability insurance, you should consider some of the important provisions a self-employed individual should include in their Disability policy.

One of the most important provisions of a Disability insurance policy is the definition of total disability, which describes the circumstances in which a person may qualify for benefits. There are three definitions offered by insurance companies, but being self-employed, you want to be considering Own-Occupation Disability only. Own-Occupation Disability pays benefits when you are unable to perform the principal duties of your current occupation. Even better is the True Own-Occupation definition which provides benefits if you are unable to perform the principal duties of your current occupation, even if you decide to work in some other occupation. Depending on your specific duties, it may be more or less important to concentrate on obtaining True Own-Occupation vs. just Own-Occupation coverage. Whichever you decide to go with, Own-Occupation is the better definition as it covers your specific occupational duties.

In addition to a quality definition of total, there are also two optional Policy Riders that every self-employed person should have. The first is Residual Disability, which provides partial benefits for partial disabilities. As you can probably expect, partial disability claims are much more common than total disability claims. Therefore purchasing a policy that does not include Residual disability benefits simply does not make sense. In addition to adding Residual benefits to your policy, you want to make sure that this rider provides partial benefits and a recovery benefit for the full policy benefit period. Depending on your exact duties and even more importantly the structure of your business, the full benefit period option may be more or less important, but regardless, anyone who is self-employed should have Residual benefits included.

Lastly is a rider that can be referred to by many names, one of which is the Future Increase Option. This rider allows you to increase the amount of monthly benefit your policy provides in the future, regardless of any changes in your health. This rider is the only way for self-employed professionals to guarantee their insurability so that they can increase their income protection, as their income increases. Most people who are self-employed do not expect their income to go down or remain level, but instead expect it to continue to increase. For this reason, it is very important to include the Future Increase Option on your Disability Income insurance policy.

Possibly the most important detail that self-employed individuals should know, is that you must be in good health to qualify for Disability insurance. Therefore, if you are healthy now, you should not delay. Purchase a policy that includes the riders previously discussed and you will be able to protect your current income as well as your future income. The biggest risk you run, is not being able to purchase Disability insurance.

If you are self-employed and need assistance with your Disability insurance, contact the Offices of Michael Kortz. Michael has been providing financial and insurance planning services in the San Clemente area for over a decade. Visit his office or call (949) 226-8390. You may visit his insurance website at http://www.tfp8.com

About the author:
Michael Kortz, RFC, RR is a Registered Financial Consultant (RFC) who holds a degree in Economics from the University of California at Irvine. He has been an insurance broker since 1999 and has received the Health Insurance Professional designation from the National Association of Health Underwriters.

Michael offers complimentary insurance consultations for the self employed and can be reached at (949) 226-8390 or visit Self Employed Insurance Programs.

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Update Feb. 23 - 2010 All About "Business Disability Insurance" By Insurance Experts

The main purpose of business disability insurance is to to replace an employer and employee's income should they be unable to work as a result of either an accident or a sickness. In fact, People tend not to spend a lot of time thinking about the financial devastation that could result from a disabling injury or sickness therefore if disability strikes, the balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality.
(Written By Kyle J. Norton)

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Disability Insurance Plans

By Suhan Suresh Shukla

Humans earn their living by work. Work can be anything, any type. But, everything is leaded forward by the same motive or force, money. The ability to do work is an asset. It is what takes a human along with the pace of the world. So, while thinking of how much one can earn while working, one also thinks about what happens if he/she is not able to work. This is where the thought if disability insurance plans come along.

Disability insurance plans are a form of insurance which helps the insurer to get one's pay even when he/she is unable to work. This inability can be due to various reasons. It can be executed when the worker is ill, has any physical injury which can hamper one's work, other medical reasons etc.

There are mainly two kinds of disability plans; one is called short-term disability plans and the other is long-term disability plans. Short-term plans have less timing of insurance coverage. It might vary from 3 months to one year depending upon the kind of plan one has chosen. After the specified time is over there will be no coverage given. Most of the companies think that giving short-term insurance plans are not cost-effective. Still, this plan is the more popular one as it gives coverage in a lesser cost. These plans are very helpful to people who find it difficult to work temporarily as they get most of their usual earnings.

Long-term disability insurance plans are meant to give you coverage for a longer period of time, which varies from one year to several years. Some of them even give you coverage till you reach your retirement age. These plans are more expensive than short-term plans. But the financial benefit of the coverage is much greater than the other.

There are some other plans which give the benefit of both the kind of plans. These are a combination of short-term and long-term plans. These might come useful for someone who seeks long-term coverage in a much lesser price. Such plans are also pretty popular.

There is another classification for disability insurance plans which contain group plans and individual plans. Mostly when group plans are being made and executed, the employer decides on the coverage options and designs the terms and conditions of the plan as it is a collective thing. Group plans have got benefits on taxation. There is also a benefit of less requirement of verification of one's health situation.

The individual basis of disability insurance gives a wider choice of selection but will be monitored much more closely. This has also got a small benefit on taxation. This kind of plan is a help for people who retire early and for those who are not part of any group insurance plan.

In order to get these plans available for a person consulting a disability insurance specialist is the best thing to do. An ordinary insurance agent may not be that helpful in these cases. A specialist can give you best of what is available and make you benefit more from it.

Author Suhan Shukla is a Professional content writer who writes on several topics including Disability Insurance Plans Perth and much other which attract attention of many readers.

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Update Feb. 04 - 2010 All About "Business Disability Insurance" By Insurance Experts

The main purpose of business disability insurance is to to replace an employer and employee's income should they be unable to work as a result of either an accident or a sickness. In fact, People tend not to spend a lot of time thinking about the financial devastation that could result from a disabling injury or sickness therefore if disability strikes, the balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality.
(Written By Kyle J. Norton)

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To read Part B. Please Scroll Down
Part B. Selecting Your Disability Insurance Broker

Part A. Learn How Your Business Can Pay for Your Insurance and Medical Expenses

By Wiley P Long

If you are self-employed, your income is subject to a 15.3% self-employment FICA tax. Added to a 28% Federal income tax and a 5% state income tax, this could leave you paying nearly 50% of your income to the government. Fortunately, most self-employed people qualify to set up an HRA or Health Reimbursement Arrangement. An HRA can enable your business to reimburse you for health insurance and out-of-pocket medical expenses, and will save you an extra $3,000 each year.

Health Reimbursement Arrangements for the Self-Employed

An HRA is simply an agreement which enables your business to cover employee's medical expenses, including individual health insurance premiums, as a tax-free fringe benefit. This tax benefit was established in Section 105 of the IRS tax code in 1955, when General Electric lobbied for a business reimbursement rule to give it more flexibility in creating employee benefits.

Anyone set up as an S-corp or C-corp qualifies to set up an HRA. If you are a Schedule C or Schedule F sole proprietor, an HRA is allowed if your spouse can work at least part time in the business. You will be setting up an employee benefits package that covers health insurance premiums, disability insurance premiums, long-term care premiums, and even out-of-pocket medical expenses such as dental coverage.

An HRA makes your taxes go down because when you get to write off medical expenses on your Schedule C, you avoid paying Federal income taxes, state income taxes, and the 15.3% FICA self-employment tax. Not only can the business reimburse you for the cost of health insurance premiums, but you can also set up the HRA to reimburse for dental coverage, preventive care, disability insurance, long-term care insurance, and other out-of-pocket medical expenses.

If you are self-employed but do not have an HRA, you can write off your health insurance premiums on your 1040, saving you Federal income taxes. But, you are still subject to FICA and state income taxes for these expenses. You are not able to write off any of the other expenses listed above.

Using an HRA with a Health Savings Account

Some financial advisors do not realize that you can have an HRA along with a Health Savings Account (HSA). You can of course. The only caveat is that the HRA cannot reimburse for expenses that could apply toward the deductible of the HSA, such as doctor visits or prescription drugs. But, it can cover any insurance premiums and preventive care.

The potential savings are substantial. Let's assume a business owner is in a 28% tax bracket, has an HSA plan, and is incurring the following expenses.

• Health insurance premiums - $7,000
• Preventive expenses - $1,000
• Other insurance - $2,000

The self-employed business owner can write off the $7,000 premium on Federal income taxes, saving 28% of that or $1,960. If the HSA is fully funded, an additional $1,582 will be saved off of Federal income taxes and $282.50 from state income taxes. So, in total, the business owner’s taxes will go down by $3,824.50. Once an HRA is set up, the entire $10,000 in expenses listed above can be reimbursed by the business. So, the business owner would be saving a total of $2,800 from Federal income taxes, $500 from state income taxes, and $1,530 in self-employment taxes. The business owner will also get to take advantage of the same $1,960 in HSA tax savings, for a total tax reduction of $6,790.

Smart business owners take advantage of all the tax deductions for which they qualify. You can reimburse health insurance expenses from the beginning of the year, but out-of-pocket expenses only from the date your HRA begins.

By Wiley Long - President, HSA for America (http://www.health--savings--accounts.com) - The nation's leading independent health insurance firm specializing that work with a Health Savings Account.

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Part B. Selecting Your Disability Insurance Broker

By Michael Relvas

In order to purchase Disability Insurance, a person will be required to work with an insurance agent of some sort. Even if you decide to purchase DI directly from a specific company, the person you go through to purchase it must be a licensed agent. The agent you work with may be a Career Agent that is only able to represent one company or a Broker Agent who is capable of representing multiple insurance companies. If you decide to purchase your coverage from a Career Agent, it would be advisable to at least speak with a broker agent as well. Broker agents are more likely to know and properly assess what is available on the market. Essentially allowing them to know what product and provisions are truly best for your specific circumstances and occupation.

Prior to actually purchasing a policy there are a few steps you should take to ensure that you find the best option for you. The first is to gather an understanding of Disability insurance and the provisions that distinguish a quality, comprehensive policy from a basic, low-grade policy. The second thing is to find an experienced agent to ensure you are receiving quality and expert advice.

Becoming informed about Disability insurance and the important provisions to have in your policy can be fairly simple. The Internet is filled with websites providing information about Disability insurance. Although many of these sites are mostly concerned with having you complete a quote request form, there are a select handful of sites that truly provide valuable content and quality advice. The following is a list of keywords of which you should have basic knowledge when purchasing your coverage: Noncancelable and Guaranteed Renewable, Own-Occupation definition of disability, Residual Disability, policy riders, policy exclusions and limitations. Although there are other important parts to Disability insurance, learning the details associated with the listed keywords will give any consumer a solid head start in understanding the complexity of Disability insurance.

Finding an experienced Disability insurance broker is a great way of complementing your knowledge of Disability insurance. The agent you work with will be a contributing factor in the Disability insurance policy you purchase. For this reason, it is important to work with an experienced agent who can truly provide you a valued service and worthwhile advice. Although there are many ways of distinguishing whether an agent is experienced with Disability insurance, the following are two simple giveaways:

With DI, experience does not necessarily come with age and years in the financial services industry - it comes from making it a big part of one's business. There are agents who sell more Disability insurance in one year than other agents have sold over their entire careers. The following provides a fair distinction of the experience level of an agent with regard to DI:

- An agent who has sold 1-12 policies probably has very limited experience.
- An agent who has sold 12-25 policies probably has a fairly decent understanding.
- An agent who has sold 25-100 policies can be considered an experienced agent.
- An agent who has sold over 100 policies can be considered a Disability insurance expert.

The second and even more important way of knowing if you are working with an experienced agent is whether he/she tries to sell you a policy based on price, or on quality. Disability insurance is much more detailed than most people expect and having a quality contract is much more important than is the cost. An experienced or expert agent will know this and will be sure to portray this to you relatively quickly in your conversation. If your agent is saying this one is cheaper than that one, I would suggest you find a new agent. Prior to looking at pricing, your agent should be concerned with helping you understand the different provisions and the reason why purchasing a quality contract is so important.

More often than not, your gut will lead you in the right direction. If you feel uncertain about the agent you are working with, you should consider looking elsewhere. Unlike Term Life insurance, where pricing is a big factor, DI comes in all sorts of shapes, sizes and quality. When protecting something as important as your income, your family, and your future, it is worth finding a quality agent to work with.

Michael Relvas is an insurance specialist and the owner of MR Insurance Consultants, an insurance services firm in the Washington DC area. He assists professionals nationwide with information and advice on purchasing Disability insurance. If you have any questions related to your circumstances and/or are interested in reviewing your options, MR Insurance Consultants invites you to call 1-800-817-4522 or visit our Disability insurance website to learn more
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Update Jan. 15 - 2010 All About "Business Disability Insurance" By Insurance Experts

The main purpose of business disability insurance is to to replace an employer and employee's income should they be unable to work as a result of either an accident or a sickness. In fact, People tend not to spend a lot of time thinking about the financial devastation that could result from a disabling injury or sickness therefore if disability strikes, the balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality.
(Written By Kyle J. Norton)

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Save Money on Disability Insurance Premiums As a Female Professional

By Michael Relvas

If you are a female professional that is in the market for Long Term Disability insurance, you probably have realized that disability coverage for women is fairly pricey. Due to a higher claims history with women, insurance companies usually charge 30-40% more for women than they do for men. As a female professional, it is important that you learn about the different ways that you can save on your premiums without having to sacrifice the benefits.

Most people looking for individual Disability insurance will do so either because they are self-employed or because their employer does not provide coverage for them. Whether you are a female business owner or a female professional working for a small, medium or large business, you could qualify for significant savings on your Disability insurance premiums. The following are two techniques we often use for our clients.

Multi-Life Disability Insurance Discount

The first and most effective manor in which female professionals can save money when obtaining individual Disability insurance, is by applying through a multi-life scenario. Insurance carriers offer multi-life discounts to groups of 2 or more (3 or more, with some carriers) people who will be applying for Disability coverage together, as long as they work for the same business. Having more than one applicant distributes the risk an insurance company is taking and therefore, they are willing to offer discounts as an incentive. There are two ways that women save money when applying through a multi-life scenario. First of all, each applicant will qualify for unisex rates, which can reduce female rates by approximately 30 percent. Additionally, insurance companies offer a 5 to 10 percent discount because there are multiple policies being obtained. Typically while a male professional may save 5-10 percent, a female will normally save upwards of 40 percent on their premiums by applying under a multi-life discount scenario.

Many insurance brokers/agents do not market this opportunity as much or as well as they should - perhaps because they would rather the higher commission on individual policies or perhaps because they simply do not have the knowledge base. In either case, as a savvy and informed consumer, you should ask questions about the multi-life program offered by each Disability insurance carrier you consider.

Association Discounts for Disability Insurance

Another way of saving on your Long-Term Disability insurance premiums as a woman is by researching Association Discounts that may be available. For example, one insurance carrier we work with will provide a 10 percent discount to all members of the National Association of Women Business Owners. When speaking with an insurance broker/agent, you should let him/her know about any associations you belong to or are considering joining. You may qualify for discounts that you are not aware of. In some situations, you may even be able to join simply to take advantage of the discount available.

Be careful not to mistake association discounts for association plans which are actual disability contracts provided through associations such as: American Medical Association, American Dental Association, American Bar Association, American Institute of CPAs, American Veterinary Medical Association, etc. Although plans provided by such associations may be less expensive, the coverage they provide is significantly lower quality than an individual policy. Commonly, these types of plans are specifically weak in their definitions of disability, residual benefits and often include a 24-month limitation on benefits for disabilities caused by mental or nervous conditions.

M*R Insurance Consultants is a web based insurance firm that helps consumers in purchasing Life Insurance and Disability Insurance on the Internet. Our specialists take a consultative approach to every client's circumstance providing personalized quotes, information and advice about how to obtain quality coverage at the right price.

Article Source: http://EzineArticles.com/?expert=Michael_Relvas

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Private Disability Insurance Gives You Protection in Difficult Times

By Em John

Private disability insurance gives you protection in difficult times.

Nobody likes to think of being disabled. Unfortunately when accidents happen, they quickly change your financial prospects. What are your options when you find yourself in a difficult spot? In other words, you should have a plan of action, if you do not already have, in case there is a situation where disability insurance will be required.

There are 2 kinds of Private Disability Insurance:

* Premiums guaranteed to be the same for the life of the contract, unless the benefit is increased.

* Guaranteed interchangeable where a company reserves the right to increase the insurance when the number of people in a specific category begins to increase.

Your Insurance Depends On:

* Weighing of Potential Hazards: Job Dangers and the potential for you to get injured

* Compensation: Are you looking to cover all your expenses?

* Medical History: Your current health and what medical history your family has and whether this income can be survived upon

Other factors that go into the assessing your situation, are your sex, age and province or state of residence. Also, Residual and partial riders are available for you if your situation changes and you go back to work in another job or somehow you experience a loss of income or wif you go back to work as a part-time employee, but in the same job.

So the bottom line is this:

Although no one likes to talk about getting hurt, Private Disability Insurance is critical to have during these times. Investing in a policy helps to strengthen your overall financial plan, or at least gives it a solid foundation.

Many people like to go online to get these insurance quotes. Click Here to find and compare Private Disability Insurance with the best providers. It's fast and easy. You'll save time and money.

Happy Hunting & Good Luck.

Article Source: http://EzineArticles.com/?expert=Em_John

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