Disability Insurance: The Coverage You Lack, but Really Need

Are you one of the 100 million people in the United States who are putting their retirement and financial lives in jeopardy?

Imagine driving home this evening and then suddenly waking up in an unfamiliar bed surrounded by unfamiliar people. You notice your loved ones and the look of concern on their faces. You are told that you were in an auto accident. You struggle to remember what happened, but fortunately there were several witnesses. The accident, to your relief, was not your fault. You think you've dodged a bullet because you know your auto policy insurance coverage was minimal.

In the days that follow, you learn that it may take months -– if not years –- to get rehabilitated. You worry how you will pay your bills if you cannot work. Luckily, your brother-in-law knows a great personal injury attorney who has agreed to help you. Should you expect a settlement of several hundred thousand dollars? Your attorney says to take it one day at a time, but that it is possible based on your injuries and the amount of time you will be unable to work. Although you would much rather be healthy enough to work, you can rest a little easier knowing you have an open and shut case.

And then you get a call that changes your life forever. Your attorney says the person who hit you has no insurance and no personal assets. "But I can still sue him, right?" you ask. "I can still get the money I need to pay my bills," you continue. The answer is no. If there was no insurance and there are no assets, you can sue -- but there is nothing for you to get.

Your health insurance policy will pay for your medical treatment, but once you are released from care, there are no assets to help you pay your mortgage or living expenses. You are on your own. After just a few months, what took you years to save has been depleted. You now are unable to work and have no assets left. The auto accident may have been unavoidable, but your situation sure was.

The Answer Is Disability Insurance

Disability insurance provides monthly income to those who become disabled as a result of injury or sickness. Unless you are nearing retirement, your ability to earn an income is your largest asset. And although disability is quite common -– studies have suggested a 35-year-old has an almost one in four change ofbecoming disabled during their working career -- approximately 69 percent of workers are without private disability income insurance. The reasons for this lack of coverage are many, but the high cost of disability insurance policies is one of them.

If you work for a large company, ask the human resources department if a group plan is provided and if you can increase your coverage. If you don't have access to employer-provided disability insurance, go for private coverage. If that doesn't work out add "uninsured/underinsured" coverage to your automobile insurance policy.

A rider you can request from your auto insurance company can protect you from the (are you ready for this?) 16 percent of U.S. motorists who have no auto insurance. Mississippi, Alabama and California have the highest percentage of uninsured drivers (all 25 percent or higher); Maine, Vermont and Massachusetts have the lowest percentage (all 6 percent or less).

Here's how it works. Even if someone hits you and you are not at fault, if they don't have insurance or enough assets to pay your lawsuit, your insurance company will pay the claim. It's basically an insurance policy protecting you from all these drivers who can't afford to pay you if they injure you.

For those without this coverage, Los Angeles personal injury attorney Jeff Wolfhas to have a tough conversation. "It is very difficult to tell a client that her options are limited even when the driver who hit her and caused her serious physical injuries is clearly at fault. Yet, this is the conversation I am forced to have when the at-fault driver has no insurance or has insurance with a low policy limit. But, if a client has a large uninsured or underinsured motorist policy, then this practical hurdle never arises."

I Took A Walk On a Saturday Night, Fog in the Air Just To Make My Mind Seems Clear!!!

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How Much Do Cars Cost You? 3 Years of Your Working Life

That car that's supposed to provide you with the freedom to get you where you want to go may also be one of the many chains tying you down to a job you'd rather ditch. That's because -- over the course of a lifetime -- the average person will spend more than three years at work just to pay for their various sets of wheels.

The folks at eBay Deals recently released a "Trading Time" calculator that lets you figure out how long you have to work to pay for various expenses. It's an eye-opener.

Over a 50-year working lifetime, the typical person will work 157 weeks to generate the cash needed to pay for his or her cars. Then, add in another 50 weeks of work to cover car insurance. Those figures are based on the weekly median gross income. Yours may be higher or lower, of course.

If that doesn't seem like a lot to you, then think about this: You work even longer to pay for your vehicles because you need to figure in taxes and the interest on your car loans. And don't forget all the time in that vehicle commuting or shuttling your kids around.

According to the Trading Time calculator, other major expenses that keep you chained to your desk may include shoes (17 weeks), phone bills (60 weeks) and even toilet paper (two weeks).

Whether you love your job, hate it or or fall somewhere in between, it's helpful to think about the things you spend money on in terms of the amount of time you have to spend working to pay for them. Only you can decide what's really worth it.

Can You Get Back Some of Your Time?

Of course you may have no choice but to drive, and in that case, you may want to look for ways to try to reduce your costs. For example, can you drive a slightly used car instead of a new one? Keep your vehicle longer? Settle for a more economical model?

Another way to cut costs is to improve your credit. With a better credit score, you will qualify for a lower interest rate, which can mean significant savings over the life of the loan. You can see your credit scores for free at Credit.com to determine whether your credit is good. Ideally, you want to review it at least a month before you plan to shop for a vehicle in order to address any issues you uncover. (Give yourself more lead time if your credit isn't great. Here's a guide to help yourebuild your credit. )

Here's an example of the savings you may achieve by boosting your credit. As of June 4, the lowest quoted rate for a $20,000 50-month auto loan with excellent credit on Credit.com is 1.99 percent. That translates into a monthly payment of $411. But for someone with poor credit, the rate jumps to 14.99 percent or a monthly payment of $540.

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Life insurance

Life insurance (or commonly life assurance, especially in the Commonwealth) is a contract between an insured (insurance policy holder) and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the "benefits") in exchange for a premium, upon the death of the insured person. Depending on the contract, other events such asterminal illness or critical illness may also trigger payment. The policy holder typically pays a premium, either regularly or as a lump sum. Other expenses (such as funeral expenses) are also sometimes included in the benefits.

Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot, and civil commotion.

Life-based contracts tend to fall into two major categories:

• Protection policies – designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance.
• Investment policies – where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US) are whole life, universal life, andvariable life policies.

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Fighting a Health Insurance Claim Denial

You might run up against a health insurance claim denial when you use a medical service. Fortunately, routes are available for disputing claim denials, including getting help from the government in many states.

It's usually worth fighting your denial. Sometimes your insurer will surrender and pay your claim to avoid the expense of handling an appeal. Sometimes your protests will uncover and reverse a mistake the insurer has made. And often a combination of the two will result in at least a partial payment.

Prevention

The best way to avert a claim problem is to avoid a dispute in the first place.

This will take a little work on your part: You must read your policy and understand what it covers -- and doesn't cover -- before you get treatment. Pay particular attention to procedures and treatments that require prior approval from your insurer. If you fail to get prior approval, your care may not be covered.

Alert your doctor about what's covered under your policy and try to make sure that she knows when prior approval is required. Your doctor deals with many patients and health insurance companies, so you can't expect that she will be as familiar with your health plan as she is with your medical history.

If you are enrolled in a PPO or HMO make sure that you understand your health plan’s policy about using network providers. If you are in an HMO you will not be covered for any health-related services outside the HMO network unless you need some type of procedure that is not available in the network. You will need to get prior approval from the HMO for such services. The same applies for your PPO, you most likely can go out-of-network, but you will have significant out-of-pocket expenses.

If there is anything in your policy that you don't understand, call your health plan's customer service line and ask for an explanation.

Once you file a claim or you have asked for a pre-approval of a treatment, keep all of the records -- provider bills, explanations of benefits notices from your insurer and all other correspondence -- in a folder or paper-clipped together, so you can review them at a glance if the need arises.

If Your Claim is Denied

Start by reviewing your paperwork file. Then call your health plan's customer service line. Often, mistaken denials can be cleared up at this level. Be sure to take notes on all phone conversations, including the date and time of the call, the names of the people you talk to and what was discussed.

Formal Appeals

If speaking with a customer service representative does not work, you may have to escalate to a formal written appeal.

Your insurance policy will outline the paperwork your health plan requires you to file. You can expect to provide a great deal of information in writing, including copies of bills, your healthcare provider's name, address and phone number, and your physician's statement about why your treatment was or will be necessary.

Many health plans have several steps in the appeal process. If your initial appeal is denied, you most likely will have additional appeals available. The entire appeal process should be outlined in the benefits booklet you received from your health plan.

Independent Reviews

In many states, you can ask your state insurance commissioner's office to perform an independent review of your dispute. This step is usually taken after you go through your health plan's internal appeals process first.

To find out about an independent review, check your health plan benefits booklet (sometimes referred to as “Evidence of Coverage”), which in some states is required to inform health plan members about appeals options external to the health plan. Another important resource is your state’s insurance department, or agency.

Arbitration

Some health plans offer arbitration, in which an independent third party reviews the dispute and recommends an outcome. Whether the arbitrator's ruling is binding depends on the state and the health plan.

If arbitration is offered under an employer-provided health plan, federal law says you can't be charged for using it.

Be Organized and Persistent

The more information you have, the more likely you are to win your claims denial appeal. Create a paper trail by keeping the following:

• your health insurance policy
• copies of denial letters from your health plan
• copies of any correspondence between you and your health plan, or between your health care provider (such as your doctor, hospital, or lab) and your health plan
• detailed notes of conversations with your health plan
• copies of correspondence with your state insurance department

If you get your health insurance through your employer, you should discuss your claims situation with your company’s benefit manager, who may have some leverage with your health plan.

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