A blog to help you prepare for life's unexpected
A blog to help you prepare for life's unexpected
When it comes to insurance and financial planning, giving takes on several meanings depending on what is important to you.
How are you giving peace of mind to your family with proactive planning and protection? How are you paying it forward through intentional charitable planning?
Keeping all this mind, I would like to share a personal story about my veteran husband, Tony, and his family.
October is Disability Employment Awareness and Financial Planning Month. When you think of disability insurance, what first comes to mind? For too many people, thoughts first go to medical expenses related to unexpectedly being disabled and since their health insurance covers those medical expenses, it can easily be dismissed as not needed. Disability insurance is NOT health insurance. It is insurance to cover your income and personal financial obligations when you are not able to work to earn that income.
According to the Council for Disability Awareness, disability is a common cause of bankruptcy. Long-term disability claims most commonly stem from musculoskeletal disorders, cancer, pregnancy, mental health issues and injuries. Depending on the cause of the disablement, while Worker’s Compensation and Social Security Disability Insurance may offer some benefits, they will not offer the income replacement to pay all of your household expenses that may be needed. Disability insurance is a back-up plan if you cannot go back to work temporarily or permanently.
Whether you are employed by another company or are a business owner, understanding the value of disability insurance is essential for effective financial planning.
A Wake-up Call
A client, who was 46 years old and CEO of his company, was anguished by the sudden loss of his brother from a heart attack at a young age. This compelled him to think about his own mortality so he went for a proactive health screening and felt strongly that he should look into disability insurance, being the sole provider for his family. While he was in good health, something that popped up in his proactive screening caused the initial Disability Insurance carrier to deny his application.
Due to access to a variety of carriers, we were able to resource a custom high-risk carrier to underwrite him, customized for him, and for the same price he hoped to pay when initially considering options.
After an insurance review and audit, a CFO of a company in the engineering and construction field with 250 employees learned that the company was under-insured in disability insurance based on the HR Director showing that the owners and several employees had incomes exceeding their group disability coverage. Upon analyzing the group long-term disability contract and census, it was further clarified that as the company continued to grow, this issue would also grow. Another issue of concern was that full group underwriting would be difficult due to the medical issues of some of the key people.
The solution was to obtain a guaranteed issue offer from a leading individual disability carrier for the owners and key people, avoiding the cost of a much higher cap for the entire company that would also entail more challenging medical underwriting.
You Just Never Know
I have become impassioned about the value of disability insurance for a very personal reason. Good friends of ours, a family of five, were hit by a teenage driver two days before the Christmas holiday, resulting in the tragic loss of their six-year-old daughter. The mother who was driving, and two other children survived, however, the husband and father required extensive recovery time and rehab over a four-month time period. Without disability insurance, this caused significant financial hardship. Friends and family came together to raise funds to help support the family through this stressful and emotional time in their lives. I often ask myself, what about the family who doesn’t have that support network around them? What would they do without a safety net of financial support?
6 Key Questions - Disability Insurance
The questions below pertain to you as an employee as well as if you are also a business owner or employer.
Answer the questions that best relate to your current situation to guide you in understanding the value of disability insurance for you.
In my opinion, disability insurance should not be an option. It is a prudent financial resource to ensure your peace of mind and your family’s comfort and wellbeing. It is also an astute financial business initiative for companies that value their employees and key people.
For Your Future,
Lori Capozza Zeind
P.S. Check out LCZ Consulting's ever-growing Insights Library. Confused by insurance terms. Check out our Glossary!
With September being Life Insurance and Healthy Aging Month, it seemed the perfect opportunity to bring awareness to how your health and habits can positively impact your life insurance premiums. While wellness programs in companies have proven their value in reducing health insurance premiums, does the same hold true for gaining a better life insurance premium? The answer is, “Yes!”
An article in Corporate Wellness magazine affirms that life insurance is very much a corollary to health insurance because both instruments offer financial security against a potentially devastating chronic medical condition or incurable illness. However, wouldn’t it be even better for the life insurance to be an instrument for benefiting your heirs instead of covering the costs of poor health after you are gone?
The month of August is back to school for many families and is also What Will Be Your Legacy Month, which has inspired this month’s Zinsurance blog. Especially during back to school, the hustle and bustle of more demanding schedules, juggling many activities and responsibilities, and preparing for the onset of numerous holidays places family in the forefront as you prepare to manage it all on a day-to-day basis.
Whether you are a Millennial, Generation X, Baby Boomer, or of the Silent Generation, taking care of your next generation takes on very different priorities depending on how you are approaching your financial planning right now. The question then becomes, are you covering all your bases or taking a chance that could negatively impact what you desire for your next generation or is unintentionally hindering your ability to leverage your income and assets right now as effectively as you could.
If legacy planning is important to you as an aspect of your financial plan, considering what it will look like for your next generation while also taking care of your needs throughout your life are key considerations.
Welcome to the first official issue of our Zinsurance Blog! I am excited to bring this value-added resource to your inboxes and to feed your curiosity in virtual online browsing and fact finding. Since launching my business, this has been in the strategic plan to debut, and now was the perfect time to bring it into reality. Along with the blog, check out our Insights Library which debuted along with this first blog edition. You’ll find articles on everything from the basics on life insurance, disability, long-term care to tax implications. These articles feature expertise from our many providers we resource to bring you the best possible options to consider. And the library will continue to grow as we identify more articles from our expansive network of resources.
In this blog you will learn:
About the Blog
Hi, I’m Lori Zeind, founder of LCZ Consulting. I am excited to bring this blog to you. Each month, I will bring you insights, along with guest blogs from alliance partners, so you can get to know the entire network of experts and knowledge we bring to our commitment to peace of mind for clients.