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SFSP Offers Voluntary Guaranteed Issue Group LTD Plan to Its Members

by John Darer CLU ChFC MSSC CeFT RSP CLTC

A new benefit rich voluntary long term disability insurance plan offered to members of the Society of Financial Service Professionals (SFSP). Disability insurance through the SFSP plan offers valuable protection including:

• Protecting your income stream in the event of an extended disability
• Benefits for both total and partial disability
• "Own occ" for 3 years
• 90 day elimination period
• 60% of income
• a cost of living adjustment
• Benefits to age 65, or later if still working.
• A monthly assisted living benefit
• A monthly annuity contribution to help make up possible reduced pension funding when disabled.
• Insured by Standard Life Insurance Company, one of the leading LTD insurers.

The law of large numbers means that the plan is guaranteed issue. That's right, guaranteed issue, but only during a window period only through March 14, 2014.  A 6/24 pre-existing condition provision applies.  There is a $10,000 per month cap. No proof of income required when enrolling but will have to prove income loss at the time of claim.  More details are in the SFSP LTD  brochure and the online enrollment materials.

Structured settlement brokers and settlement planners who have the prerequsite credentials to become a member of the Society of Financial Service Professionals (SFSP) may wish to consider joing the SFSP to be able to supplement their current individual disabilty insurance, not to mention the significant benefits of membership for information and professional growth.

Society of Financial Service Professionals (SFSP) is an 80 year old credential only organization.  85% of its 15,000+ members have over 20 years of professional experience, according to a information provided by the SFSP.

Social Security Disability (SSD) is in Danger of Insolvency

If you have been putting off buying disability insurance because you feel comfortable that the government benefits will take care of you, you may want to rethink that strategy.

The mad rush for social security disability benefits, by laid off workers and aging baby boomers, is creating a bloat of applicants and pushing the financially impaired system toward the brink of insolvency. New congressional estimates say the Social Security Trust Fund that supports Social Security Disability will run out, leaving the program unable to pay full benefits, unless Congress acts. About two decades later, Social Security's retirement fund is projected to run dry as well.

Multiply your annual earned income by the number of years you plan to work (or in these days perhaps have to work) for an idea of your financial loss exposure to long term disability.

Disability insurance is designed to protect one of your most valuable assets, your ability to earn an income

  If you are employed it is possible that your company is providing some form of disability of insurance. In several states (such as California,  New York , New Jersey, Hawaii , Puerto Rico and Rhode Island) there is a statutory temporary disability benefit. Your company may provide long term disability (LTD) coverage if you are employed but it is not mandatory.

Individually underwitten disability policies have the most comprehensive coverage if you can qualify both financially and medically and are a good defensive investment. 

What's Your Personal Disabilty Quotient? 

In the best of circumstances Social Security Disability ( SSD) is not an easy thing to get. Not only is there a requirement to have worked a certain number of quarters, but the definition of disability (see below) is particularly onerous and only really benefits you if you are totally disabled and unable to work at anything anywhere.

Read the Social Security Administration: Information about Social Security Disability and consider the criteria that the SSA uses to determine if you are eligible for benefits:

" 'Disability' under Social Security is based on your inability to work. It considers you disabled under Social Security rules if:

• You cannot do work that you did before;
• It decides that you cannot adjust to other work because of your medical condition(s); and
• Your disability has lasted or is expected to last for at least one year or to result in death.

This is a strict definition of disability. Social Security program rules assume that working families have access to other resources to provide support during periods of short-term disabilities, including workers compensation, insurance, savings and investments".

The level of uncertainty regarding the SSD program makes it something that you should not count on in your financial planning. As you can see the rules are designed under the assumption "that you have access to other resources to provide support".

Some disability insurers offer a social security supplement/substitute policy that will pay if social security does not pay.

Those who enjoy the thrill of riding by the seat of their pants without disability insurance coverage should consider employing a backstop, just in case.  You can push the waiting period back to save money.

For more information call me 888-325-8640

Disability Insurance is Critical Defensive Financial Planning

A new study released May 18, 2009 by the LIFE Foundation and America's Health Insurance Plans (AHIP). looks at the consequences facing individuals who become disabled and can't work, and the level to which various types of disability income protection can help to reduce the financial impact. The findings reveal that in the absence of insurance, a majority of Americans would likely have to make difficult financial decisions, or even drastic lifestyle changes, in order to cover the costs associated with disability, regardless of whether the disability is short- or long-term.

Lawyers and settlement professionals are used to evaluating economic losses for their clients ought to mindful of the exposure that they themselves may have to long term disability.

The aforementioned study, which was conducted by Milliman examined four representative scenarios of newly disabled individuals, finding, for example, that the financial impact of a disability - equal to lost income plus expenses - to be as high as nearly $1 million for a 40-year-old, single male earning $50,000 per year who suffers a long-term disability lasting until age 65 - nearly 20 times his pre-disability earnings. The study also showed that the costs associated with short-term disabilities can be quite significant - equaling one to nearly two times income in some cases for a disability lasting just two years.

As a result of the recession, many Americans have less savings and investments to fall back on should they become disabled and can't work. According to a recent national survey conducted by LIFE, more than a 27% of Americans admit they would begin having difficulty supporting themselves financially "immediately" following a disability, while 49% would reach that point within a month.

Disability Insurance provides a financial backstop to replace lost income if you were suddenly out of work due to sickness or injury. In 26 years this author has significant experience placing disability insurance in addition to seeing the difference it can make in a person's life who, due to life's misfortunes, has to use it.

A variety of disability forms are available to cover income on an individual or group basis, to cover overhead expenses to keep a practice or partnership running, disability buyout insurance and more. There are also specialty DI policies to cover high income earners.

For further information on disability insurance and to assess your exposure please contact John Darer at 888-325-8640.

Guardian Life and subsidiaries UPGRADED By AM Best to A++

Bucking the recent "trend" Guardian Life, the New York based major writer of long term disability and employee benefits has been upgraded by A.M. Best to its highest financial strength rating of A++ (Superior). The rating applies to Guardian's subsidiaries Berkshire Life and Guardian Insurance and Annuity Company, Inc. The company was also upgraded by Standard & Poors over the summer.

The importance of long term financial stability of insurers is equally important to both DI and structured annuity payees.

Attorneys with questions concerning long term disability insurance needs for themselves or their law firms may call John Darer at (888)325-8640 who has 25 years of experience in this area. The call is toll-free in the United States. A variety of programs are available for disability to protect your income and that of your employees, disability buyout of your partners, disability to cover your overhead expenses of your law practice.