For each of the questions below, cut and paste the question onto an email or word...

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Finance

For each of the questions below, cut and paste the question ontoan email or word document. Provide a short answer and email it tome by the due date. Short answer is all that is required.Demonstrate you understand the subject and support your answer. Forquestion #2 below, your answer can be more opinion based. That is,how you feel or your position regarding the topic is more importantto me than citing a source that doesn’t agree with yourposition.
A paragraph or two should be more than enough to secure a solidgrade/points.
1. Disability Insurance
Each disability income insurance policy has its own definitionof "total disability," or what qualifies you to collect incomereplacement benefits. This definition is one of the first things tothink about when you are reviewing disability income insurancepolicies. You need to know how disability is defined by the policyyou select and be certain that you will have income replacementbenefits if they are ever needed. Please comment on what types ofcoverage, features and definitions would be important to you as thepurchaser of the coverage.
2. Health Care Reform
A very important and controversial subject to say theleast….what are your thoughts about Health Care Reform? Commentabout the costs, benefits, availability and the impact to oureconomy just to name a few items that will impact all of us.
3. Long Term Care
If you were asked by a client to help design a well-rounded LongTerm Care policy what benefits and features would you include? Howdoes the cost of these benefits and features impact yourconsolation to the client?

Answer & Explanation Solved by verified expert

4.2 Ratings (582 Votes)

What is a disability insurance cover Disability insurance can replace a portion of your lost income if you are unable to work due to sickness or injury In case of an accident that leads to disability you will receive payments to cover not just actual expenses but also loss of income It can help you meet your financial obligations and maintain your current lifestyle It includes paid sick leave shortterm disability benefits and longterm disability benefits What is covered The most basic versions cover temporary and permanent total disability due to accident In case you are disabled fully and permanently you will receive the full sum insured If the disability is partial the policy will pay a percentage of the sum insured depending on the degree of disability For example Max Bupas Disability Benefit Cover provides up to 125 of the sum insured in case of permanent total disability and in case of permanent partial disability you will be paid up to 100 of sum assured Further if the disability is for a short term you would be paid a weekly benefit to compensate for the loss of income up to the maximum period specified in the policy How to select a disability insurance cover There are a few points to consider before you sign up for a disability insurance cover Choose the right coverage amount Income level and age are the main factors that play a vital role in determining the sum insured Assess your needs and select the sum assured accordingly Getting this step right will ensure that you and your family can continue to maintain your current lifestyle even if your income dries up Compare plans against disabilities covered It is important to compare the degree and types of permanent disabilities that are covered across products and opt for the widest coverage Even though comprehensive coverage is more expensive it is more effective than limited disability coverage For example if a policyholder with total disability cover loses his index finger and his hospital gives him a certificate of 15 disability his insurer might deny his claim as he is not totally disabled Read the fineprint Policies differ in the degrees of disability that they cover and the percentage of sum insured they pay In case of partial disability the percentage you are paid depends on what is stated in the policy document So pay attention to the clauses Buying Tip We can either choose a standalone disability insurance policy or opt for disability cover riders along with an insurance plan If the basic protection is what you are looking for then you may opt for the disabilityaccidental death riders which you can buy as an add on to your Life Insurance cover However if you would like a cover that provides comprehensive coverage go for a standalone policy Disability insurance is a type of insurance that will provide income in the event a worker is unable to perform their work and earn money due to a disability Short term disability insurance policies offer a worker a portion of their salary if they are unable to work for a short period typically three to six months Disability insurance provides income when a worker is injured gets sick or is unable to work Disability income is not typically as much as a workers salary but is based on a percentage of his wages Disability coverage is among the most expensive types of insurance due to the high number of claims against such policies Disability coverage provides income for employees who are unable to work Short Term Disability Shortterm disability covers workers who are initially disabled or disabled for a short time An employer may pay the premiums for shortterm disability through a plan that covers all employees The typical waiting period for a disabled employee to receive benefits is two weeks and coverage lasts between six months and two years Benefit payments are between 80 and 100 percent of salary Long Term Disability Longterm disability commonly has more restrictions than shortterm disability Policies define disability in terms of whether a worker can perform customary job duties or any work Benefits are often limited to 70 percent of the workers salary The average waiting period for disability insurance payments is 90 days Many policies pay benefits for a fixed period such as five years but others will continue to provide disability income up to age 65 Employer Group Plans Employers often bear the cost of disability insurance premiums for all workers through a group coverage plan Group plans paid by employees are generally less expensive than individual policies purchased by employees Insurance companies charge premiums based on the employment hazards at a given workplace Office employees pay less than construction workers for example The benefits paid to employees are not taxable income if the employee paid the premiums but benefits are taxed if the employer paid Individual Coverage The cost of individual disability coverage is often prohibitive despite a persons occupation Individual plans offer greater flexibility to make policy changes and to define coverage for paying benefits if you are not able to perform your current job tasks even if you are able to earn income through another job Individuals are often subject to a probationary period before coverage begins This prevents carriers from immediately paying disability income for ongoing recoveries or preexisting conditions One of the goals of the Affordable Care Act is to improve the quality and safety of See Answer

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