Long Term Income Protection
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In times of economic uncertainty, long term income protection becomes a real priority. In the wake of bank failures, corporate mergers, layoffs, and plant closings, Americans are taking a hard look at not only how to save money for retirement, but also how to guarantee income in the event of a debilitating accident or injury on the job. When workers are injured, suffer chronic illnesses, or opts for maternity leave; the bills will keep on coming. And in the case of a single-income home, making ends meet without disability insurance or payroll protection is next to impossible. Mortgages, payments for one or more vehicles, college tuition, credit card debt, utilities and basic living expenses are all in jeopardy of not being met, unless workers have a second source of steady cash. Disabled employees can become overwhelmed by a flood of debt in a relatively short period of time. "So shall they fear the name of the Lord from the west, and his glory from the rising sun. When the enemy shall come in like a flood, the Spirit of the Lord shall lift up a standard against him" (Isaiah 59:19).
Fortunately, for most workers who are still employed, companies offer a measure of security in the form of state-mandated business insurance. Accidents happen; and when they do, employees usually rely on employer-provided plans, such as workers' compensation and unemployment insurance to tide them over until recovery. Workers' compensation insurance pays hospital and rehabilitation, along with a small portion of an employee's income, until doctors release them to come back to work. The state honors labor laws by compensating unemployed workers who were not fired from the job, but laid off due to a lack of work. Disabled employees may purchase additional personal coverage or take advantage of employee benefits packages which provide long term income protection while recuperating. Insurance adjusters take into account the nature and extent of the employee's injuries or disability and calculate compensation based on a percentage of fulltime earnings.
Long term income protection guarantees that disabled individuals and their families can maintain the same standard of living as health improves. Insurance agencies work with employers to draft coverage which will enable injured or disabled workers to meet mortgage obligations, pay for automobile loans, and cover expenses for food, clothing, and ongoing healthcare. Insured persons typically are compensated in amounts which equal to or are a percentage of their pre-injury income. In cases of severe work-related injuries where the employer is at fault, judgments can be awarded compensatory with personal injuries. Such judgments would have to be agreed to by the employer's legal advisors or in the courts, in the case of a personal injury dispute.
The Human Resources Department, Benefits Manager, or employee assistance program will review a worker's application for long term income protection. Applications will include the employee's name, address, phone number; and a complete report of the accident or injury. Medical records detailing the nature of treatment, prescribed medication, rehabilitation or therapy, surgical procedures performed, or follow-up treatment will become part of the applicant's packet. Requests for review can be faxed, emailed, or mailed to the employers long term income protection provider for consideration. After undergoing the underwriting process, whereby insurance providers determine the amount of compensation, applicants are apprised of a settlement, which can be accepted or rejected. Depending upon the disabled worker's condition and circumstances, provisions may include future increased payment options, as healthcare needs increase. Lifetime and catastrophic benefits may also apply in cases of a severely debilitating injury or chronic illness. Compensation may also decrease or be eliminated totally as patients recover and are able to resume working.
The importance of long term income protection cannot be overstated. The loss of financial support suffered by a primary breadwinner who is injured on the job or temporarily or permanently disabled can derail a family's ability to be sustained. Injured or disabled workers can be in jeopardy of losing homes, vehicles, retirement funds or college savings. Without long term income protection, many workers face bankruptcy, foreclosure, repossession, or eviction. Spouses and children may be faced with having to replace household earnings without the necessary job skills or education to compete in today's workplace. Having a plan in place before an accident or injury occurs is just plain good common sense. And while some workers may balk at having payroll deductions taken out to cover disability insurance premiums, the decision to safeguard future earnings in the case of an unexpected injury is a wise one and well worth the cost.
Families which benefit from long term income protection can go on living as they are accustomed. Mom and Dad can afford to send the kids to college or plan on retiring with funds in place for the golden years. And the dream of owning a home doesn't have to die due to short-term or debilitating illness or injury. In spite of plant closures, bank failures, and company layoffs, workers can still get financial assistance until future employment can be secured. Some labor laws and regulations require states to provide unemployment checks for up to two years. Additional coverage outside of the workplace may be purchased to aid in maintaining the family lifestyle. New hires should confer with Human Resources and employee benefits administrators to make sure that disability insurance provides adequate income during periods of unemployment due to accident or injury. While Workers' Compensation and unemployment laws vary from state to state, employers should provide new hires with detailed information as part of the benefits package. Employer-provided policies are an invaluable asset as workers recover from short- or long-term illness, accidents, or injuries which adversely impact their ability to make a living.
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