No one expects an accident to interrupt their normal activities, but it can happen, and but a good disability policy provides protection just in case, protecting your income due to an accident or medical emergency.

This section provides the basic information you need to know.

What is disability insurance?

Disability insurance is designed to protect you against financial disaster, paying benefits when you are unable to earn a living because of sickness or injury. Most policies replace part of your earned income (usually 50 to 70 percent) when you’re unable to work.

Why would you need disability insurance?

You have a better chance of being disabled for more than three months are than of dying prematurely. Many illnesses and injuries that were once fatal are now treatable, and while that’s fortunate for us all, it increases your need to protect your income with disability insurance.

What might happen if you suffered an injury or illness and couldn’t work for an extended period? A single person may have no other means of support, while a married person may be able to rely on their spouse for income, but probably also has many financial obligations, like supporting their children and paying a mortgage. You don’t have to be working in a hazardous position to need disability insurance, because accidents happen not only on the job but also at home, and illness can happen to anyone.

Disability insurance can protect you in several ways if you won a business. You can purchase an individual policy that will protect your own income, and you can also purchase insurance designed to protect you from the impact that losing an important employee would have on your business. Business overhead expense insurance covers you if you get sick, so that your business will stay healthy. You can also purchase a disability insurance policy that will enable you to buy a business partner’s interest in the event that he or she becomes disabled.

What’s the difference between private and government disability insurance?

In general, disability insurance can be split into two types: private insurance (individual or group policies purchased from an insurance company), and government insurance (social insurance provided through state or federal governments).

Private disability insurance refers to disability insurance that you purchase through an insurance company. Many types of private disability insurance exist, including individual policies, group policies, group association policies, specialized group policies, and riders attached to life insurance policies. Depending on the type of policy chosen, private disability policies usually offer more comprehensive benefits to insured individuals than social insurance. Individually-owned policies may offer the most coverage (at a greater cost), followed by group policies offered by an employer or association.

Workers’ compensation and Social Security are government disability insurance programs. If you are a civil service worker, a military service member, or other federal, state, or local government employee, there are many disability programs set up to benefit you. In general, however, government disability insurance programs are designed to provide limited benefits under restrictive terms, and you should not rely upon them (as many people mistakenly do) as your main source of income if you are disabled.

Although government disability insurance programs are generally inflexible because they are designed to meet the needs of the general public, private individual policies can be customized to meet your individual needs.

Life insurance provides financial security to surviving family members on the death of an insured person. It can:

• Pay for your children’s education.
• Cover a particular need such as paying off a mortgage or consumer debt
• Compensate a company on the death of a key employee or to provide a surviving partner the resources to buy out the deceased partner’s share of the business.
• Provide funds to pay estate taxes or other final obligations necessary to settle a deceased person’s estate.
• Provide the funds necessary for the deceased person’s burial expenses.
• Supplement a survivor’s retirement income.

What is life insurance?

As an agreement between you (the insured) and an insurance company (the insurer), a life insurance contract, says that the insurer promises to pay a certain amount to someone (a beneficiary) when you die, in exchange for your premium payments.

Why would you need life insurance?

Life insurance is most commonly bought to replace the income lost when you die. If you work, and your income is used to support yourself and your family, then when you die, and your paychecks stop, life insurance proceeds can be used to continue to support the family members you’ve left behind.

Life insurance proceeds can also pay off any debts you leave behind, such as mortgages, car loans, medical bills, and credit card debts, leaving your other assets intact for your family to use.

Life insurance also creates an estate for your heirs. After your debts and expenses are paid, there may not be much left over for your family, but life insurance can automatically provide assets for them after your death. Life insurance is also a great way to give to charity when you die.

There are several kinds of life insurance policies. Term life insurance policies provide life insurance protection for a specific period of time or term, lasting for 10, 15, 20 and even 30 years. Permanent insurance policies provide insurance protection for your entire life as long as the policy remains in force, and also builds internal cash values, often described as a savings account within the policy.

The cost of life insurance will depend upon the type of policy, your age, and your health at the time the policy is issued.

Long-Term Care Insurance is designed to assist in paying the cost of care, when Medicare and other income sources are not enough, for individuals who suffer from chronic illness, disabilities or other conditions who require assistance for routine activities. These needs range from needing assistance with simple activities to needing care provided by skilled professionals. Whether it be hospitalization, in-home care, or assisted living facilities, these can easily break your bank account and deplete the retirement nest egg you worked so hard to create.  With the support of long-term care insurance, you will have the financial cushion you need over the long term; your loved one’s bank accounts will thank you for it too!

The need for long-term care can be a crucial aspect to overall living and expenses. Whether someone wants to stay in the comfort of their home, or move to a facility with on-site care, taking the time to look into the options that long-term care insurance offers is a great decision.

For those who suffer with the inability to care for themselves on their own, long-term care insurance may be the best option for the future. There are many different plans and options to fit everyone.

The medical expenses of only one person or family are covered by individual health insurance. A series of medical questions and/or a physical exam will determine your risk potential and whether you qualify, and how much your insurance will cost.

If it’s available, group insurance is generally a better option than individual coverage, since it is usually more comprehensive. Individual coverage, though, is better than being uninsured. With individual insurance, you are directly in control of your policy, and can negotiate to have certain provisions included or excluded, and you can often choose your deductible amount and co-payment percentage. These things, however, will affect your premiums.

Affordable Care Act

The Affordable Care Act is also known as The Health Insurance Marketplace and opened on Oct. 1, 2013. This is primarily for individuals or small businesses needing health insurance options.

ACHS Insurance has certified agents to help you understand this program.

If you do not qualify for federal assistance, we offer individual health plans as well as group health plans from the private marketplace to meet your needs. ACHS Insurance is your source for insurance in and out of the marketplace!