Paul Lewing on fri 25 jun 99
I've been changing some things about my insurance coverage lately, and
disability insurance is a subject that I've thought about but never done
anything about.
Do any of you have this? What kind of coverage do you have and what
does it cost you? Anybody ever had to use it, or not had it and wished
they had?
I must admit that I'm periodically really frightened by how small an
injury, like a broken finger, or an eye injury, it would take to make me
unemployed.
Paul Lewing, Seattle, where we're looking at pictures of drought in the
rest of the country with amazement. We had almost an inch of rain last
night.
Eydie DeVincenzi on sun 27 jun 99
------------------
Message text written by Ceramic Arts Discussion List
=3EI looked into it and it's frighteningly expensive....right up there with
health insurance. Our business insurance does cover loss of income if the
operation is damaged by a covered loss,=3C
The reason I don't have disability insurance is that it is tied directly to
INCOME and basically I don't take an income right now as I am building my
company. It does seem risky though at a time when I am working 7 days/week
and 10 hours/day, highly stressed about financing and at 57 years of age.
I have asked about insurance that is NOT tied to income, instead protects
personal assets. Doesn't seem to exist.
Eydie DeVincenzi
e=5Fdevincenzi=40compuserve.com
Eydie DeVincenzi on sun 27 jun 99
------------------
Message text written by Ceramic Arts Discussion List
=3EI looked into it and it's frighteningly expensive....right up there with
health insurance. Our business insurance does cover loss of income if the
operation is damaged by a covered loss,=3C
The reason I don't have disability insurance is that it is tied directly to
INCOME and basically I don't take an income right now as I am building my
company. It does seem risky though at a time when I am working 7 days/week
and 10 hours/day, highly stressed about financing and at 57 years of age.
I have asked about insurance that is NOT tied to income, instead protects
personal assets. Doesn't seem to exist.
Eydie DeVincenzi
e=5Fdevincenzi=40compuserve.com
Mason Batchelder on tue 29 jun 99
My wife showed me some of the messages concerning Disability Insurance from
Potters and asked if I had any advise
First I am an actuary not a salesperson and am not selling anything but I do
have some expertise in Disability Insurance
The favorite market for Individual DI is affluent Professionals or Corporate
Executives. It is rarely offered to lower or middle income workers especially
if they do manual work such as craft people do
So it can be hard to get
Try your auto insurance company such as Allstate, State Farm or Nationwide
there are others too but the Auto, Homeowner Companies try to keep all their
customers happy with other products.
Remember that Social Security provides good coverage especially for up to
$20,000 of income
You must be disabled for 5 months to qualify and if you are denied appeal a
high % of are approved about 80% of people disabled longer than 6 months do
receive Social Security DI
Of course you must file and pay your Social Security Taxes in order to be
covered.
Another source of DI coverage is credit insurance when you finance a car or
other bank or finance company loan it pays the loan payment. It is rather
expensive but better than losing your car or house
Of course there are always the easy payments
If your work for a corporation or form one for your business as long as you
have a minimum number of people you may be able to get better access to both
long and short term coverage on a group, franchise or payroll deduction basis
Sometimes Associations offer policies but I don't know of any Craft
Organizations that do.
Sorry to be long winded but I hope this may help some
David Arial
elizabeth l gowen on wed 30 jun 99
Just a few words about things that look one way before you need it and the
reality when you need to use it. (This applies to USA) Here are a few things
I have gleaned since I was hit by a school bus 3 + years ago.
Social security:
1. One does need to be disabled for more than 6 mo. Unable to do any kind
of work., before applying. Youth and higher education work against you.
2. After applying most people are denied x2 at 6 month intervals, have
to hire a lawyer, wait 6 to 9 mo. for a hearing. ( this puts you 2+ years
out )
Most people are about 3.5 to 4 years before seeing any money. Think your
mortgage co. will wait? NOT.
3. To qualify for the highest amount ( which was 1350 a mo. a yr ago,
one has to have had a high income for a set amount of quarters ( and paid SS
taxes on that amount), or the amount you are eligible for can be
considerable less. If the later is true there may be supplimental income
assistance and food stamps which I don't know about.
Short and long term disability
1. Differ by policy, try to understand what they do cover. Don't assume
like I did the amount was in addition to other funds. Mine subtracted what I
got from workers comp. and would pay the remainder.
2. Is available for non exec types, I've had people try to sell me it
for most of my working life.
Just find a co. that does.
3. It is expensive.
Workers comp.
1. Differs by state
2. Can be gotten if 2 or more employees ( some folks do husband and
wife) in my part of the US from what I've been able to research. Again a
reason for an S corp.
3. Different states have different time periods where they can cut off
medical benifits Disabling event must be work related.Check policies out
in your area.
4. I was covered while driving on the job, I would think that going to
and from fairs "delivering pots" might also be covered if in an auto
accident, But I would check.
Some folks were smart and saved that years worth of income one is
supposed to have in researve, but many of us didn't. ( tough in this
profession ) Even the years savings won't be enough by the time something
like soc security kicks in IF it is awarded.
Ira type money is an area that shouldn't be overlooked. . If
possible over and above the 2G's the feds let you invest, another reason to
set up as an S corp., plans can be set up for the small business. The
younger you start the better. When disabled you can draw on it without
penilty ( watch out for annuities they can still penalize.) It is a tough
decision what to gamble on. Good luck
Liz Gowen NJ USA
From: Mason Batchelder
To: CLAYART@LSV.UKY.EDU
Date: Tuesday, June 29, 1999 9:37 AM
Subject: Re: disability insurance
>----------------------------Original message----------------------------
>My wife showed me some of the messages concerning Disability Insurance from
>Potters and asked if I had any advise
>First I am an actuary not a salesperson and am not selling anything but I
do
>have some expertise in Disability Insurance
>The favorite market for Individual DI is affluent Professionals or
Corporate
>Executives. It is rarely offered to lower or middle income workers
especially
>if they do manual work such as craft people do
>So it can be hard to get
>Try your auto insurance company such as Allstate, State Farm or Nationwide
>there are others too but the Auto, Homeowner Companies try to keep all
their
>customers happy with other products.
>Remember that Social Security provides good coverage especially for up to
>$20,000 of income
>You must be disabled for 5 months to qualify and if you are denied appeal a
>high % of are approved about 80% of people disabled longer than 6 months do
>receive Social Security DI
>Of course you must file and pay your Social Security Taxes in order to be
>covered.
>Another source of DI coverage is credit insurance when you finance a car or
>other bank or finance company loan it pays the loan payment. It is rather
>expensive but better than losing your car or house
>Of course there are always the easy payments
>If your work for a corporation or form one for your business as long as you
>have a minimum number of people you may be able to get better access to
both
>long and short term coverage on a group, franchise or payroll deduction
basis
>Sometimes Associations offer policies but I don't know of any Craft
>Organizations that do.
>Sorry to be long winded but I hope this may help some
>David Arial
>
Eydie DeVincenzi on wed 30 jun 99
------------------
Message text written by Ceramic Arts Discussion List
=3Ey wife showed me some of the messages concerning Disability Insurance =
from
Potters and asked if I had any advise
First I am an actuary not a salesperson and am not selling anything but I
do
have some expertise in Disability Insurance
=3C
David:
Thank you very much for your comments. Your perspective is valuable and
insightful. If I can impose on you for one question?
I have a new =5Bone-person C-corp=5D company that helps blind and partial
sighted workers. =5BPottery and CLAYART are my avocation=5D. Since my
business has yet to make a profit, I only took a token salary last year and
predict the same for this year. Here's my question: I am told that the
only disability products out there are those tied to salary. Is this true?
I am thinking about forming a not-for-profit company. Are there different
products for that type of entity?
Thank you for your help
Eydie
e=5Fdevincenzi=40compuserve.com
amy parker on thu 1 jul 99
I joined the National Association of Female Executives when I became a
self-employed programmer 13 years ago. Thru them, I purchased a disability
insurance policy. It's not the be-all and end-all, has a lot of limitations,
but for the price, it was a bargain!!! My personal insurance rep only had
a policy available that cost 5 times as much and provided only slightly
better benefits! I guess only Female Potters would qualify for this
organization! Maybe there is some equivalent networking org. for guys?
At any rate, do look into membership organizations that provide a wide
range of optional benefits at group rates to their memberships.
>I have a new [one-person C-corp] company that helps blind and partial
>sighted workers. [Pottery and CLAYART are my avocation]. Since my
>business has yet to make a profit, I only took a token salary last year and
>predict the same for this year. Here's my question: I am told that the
>only disability products out there are those tied to salary. Is this true?
> I am thinking about forming a not-for-profit company. Are there different
>products for that type of entity?
>
>Thank you for your help
>
>Eydie
>e_devincenzi@compuserve.com
>
>
amy parker Lithonia, GA
amyp@sd-software.com
Mason Batchelder on sat 3 jul 99
Liz makes many good points
Concerning Social Security :
many claimants are initially denied benefits that is true but most are
granted upon appeal.
One reason is that the requirement for disability is much more stringent for
social security than for private coverage
If you have private coverage they usually offset (reduce) for social security
and workers comp benefits. On the other hand they will help you file and
appeal since it is in their benefit that you get your benefits
DI coverage is related to income some will only cover salary or wages but
some will cover commission income or W-2 pay you need to get a good
understanding when you buy.
Most DI plans don't cover on the job Workers Comp may be your only option
there BUT if you are the employer make sure whether you are covered or not
AND if you can opt out weight the cost of providing versus the cost of not
participating
and yes the cost of loss of income insurance can be high until you lose the
income
DBA
Mason Batchelder on sat 3 jul 99
Disability coverage is tied to income not necessarily just salary you usually
need to verify what and how much income there is when purchasing they may
offer to cover from 40 to 67% of verifiable income
Generally not for profit enterprises are handled the same as others
There may be Not for Profit Associations that you could affiliate with and
they might have access to insurance that would be helpful to you.
DBA
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