inchester Insurance, Inc.
inchester Insurance, Inc.
Coinsurance - A percentage of the contracted rate to an in-network health care professional or a percentage of the cost from an out-of-network health care professional that the customer is responsible for.
Copayment (copay) - A flat per service share that customers are responsible for services such as doctors visit or prescription drugs.
Deductible - The dollar amount customer must pay before the plan begins to pay for covered services. The deductible is satisfied when each family member has paid their individual deductible or when the total family deductible amount has been reached by any combination of family members.
In-Network Health Care Professional - Any health care professional (physician, hospital, etc.) that participate in the network.
Out-of-Network Health Care Professional - Any health care professional (physician, hospital, etc.) that does not participate in the network.
Inpatient Care - Care given to a customer admitted to a hospital, hospice, skilled nursing center, or rehabilitation center.
Outpatient Care - Any health care service provided to a customer who in to admitted to a center.
Out-of-Pocket Costs - Copays, deductibles, fees, or coinsurance paid by the customer for health services or prescription drugs.
Out-of-Pocket Maximum - The most customers will pay per year for covered health expenses before the pan pays 100% for the rest of the year
Disability Insurance
Disability Insurance
Unfortunately, some of the most overlooked financial perils we face are those from injuries or illnesses that are not fatal. Generally speaking, we think in terms of life insurance to protect our families. Truth be told, during our working years, the risk of disability is considerably higher and can be financially devastating.
When purchasing disability coverage, it is like insuring the goose that lays the "golden egg." The golden egg is what we can spend. The goose is what produces it. Much like the breadwinner in the home, the ability to create an income is our most important asset. If we lose it, it's not long until our nest egg is depleted. Whether you are a self-employed businessman or a professional (doctor, lawyer, accountant, dentist), you probably need this vital protection.
The underwriting tends to be more restrictive than life insurance because it takes less to disable than it does to kill. In addition to the usual medical requirements, the company will normally request the past two year's tax returns in order to document the income being insured.
The total monthly benefit will be in the ball park of 60%-80% of your pay. If coverage is paid for with after tax dollars, a claimant will be at the lower range of the benefit scale, but money received will be tax free. If company dollars are used for the premiums and they are deducted, the benefits will be higher but the income will be taxable. Insurance companies will not provide 100% of the actual income since it may reduce the effort of the disabled person to pursue physical and occupational rehabilitation.
Another issue to consider would be the benefit period (how long benefits are paid). This can be two years, five years and to the age of 65. Obviously, the longer the benefit period, the higher the premium will be. Another issue is the waiting period (how long until benefits are payable). Waiting periods can be 30, 60, 90 or 180 days. Keep in mind that the longer the waiting period, the lower the premium. Therefore, if someone is capable of self-insuring for three to six months, they can reduce costs considerably.
To determine how long existing savings will sustain a person if they do not have coverage and they become disabled, simply total all monthly bills and multiply by 12. Then divide that number into the amount of total savings. This will give the number of years until assets are exhausted.
For example: $200,000 saved
$4,000 monthly expenses
$4,000 x 12 months = $48,000
$200,000/$48,000 = 4.2 years
Since personal income is the driving force for most people in maintaining a lifestyle, it is critical to provide for that monthly cash flow if working is no longer possible. Disability insurance is protecting the goose that lays the golden egg.