Individually-owned Disability insurance continues to protect a person's income throughout his/her career, regardless of who he/she works for.
Rockville, MD (PRWEB) December 7, 2009
With unemployment reaching a 26-year high last month, the old ways of maintaining Life insurance and Disability insurance coverage through an employer-sponsored group plan may be over.
“People like taking advantage of the insurance benefits offered at work for many reasons”, says Michael Relvas of MR Insurance Consultants, a web-based insurance firm specializing in Life insurance and Disability insurance. “Group plans provide people with: easy access, payroll deduction options and a low cost of coverage. What people don’t realize however, is that these plans provide very limited to no portability.”
This dependency is becoming a growing concern because when a person loses or changes his/her job, the group insurance coverage he/she has will either be too expensive or unavailable to continue. Being that unemployment reached 10.2% last month, relying on group coverage to fill a person's Life and Disability insurance needs could prove costly and dangerous.
One of the biggest concerns specifically related to group Long-Term Disability insurance is its lack of portability. This means that in the event of a change or loss of job, a person's Disability insurance will not continue on with him/her to a future job, which in today’s job market is a very important point to consider. Companies are still downsizing, positions are being terminated, and changes are still being made. Additionally, many companies have had to cut parts of their benefit packages in order to help maintain profitability. This has created great concern for individuals who rely solely on insurance provided through work to protect their families.
To shield themselves from this growing concern, individuals can obtain a supplemental policy outside of work, and include the Guaranteed Increase Option policy rider. This is an optional rider that allows the policy owner to increase benefits at a later date, without having to undergo medical underwriting. Not only will this provide people with independence from their employer-sponsored plans, but it will also protect them from the risk of developing health problems that could prevent them from obtaining coverage in the future. “Individually-owned Disability insurance continues to protect a person's income throughout his/her career, regardless of who he/she works for”, says Michael Relvas. “It is the single best way to protect our quality of life, our loved ones, and our future from an unexpected illness or injury.”
Unlike group Disability insurance, group Life insurance does actually provide plan participants with portability. These options are very liberal and do not require medical underwriting, which is why the cost of continuing coverage is usually very expensive. This can be great for someone who is otherwise uninsurable, but not so attractive for someone in standard or good health.
Individual Term Life insurance is an inexpensive alternative to group Life insurance that helps achieve additional financial independence from a person's job. It keeps cost low and alleviates the risk a person runs by only carrying group Life insurance. A person can obtain a 10-year Term Life insurance policy, which guarantees premiums will remain level for 10 years (this is longer than most group coverage remains level), at a very affordable cost. According to MR Insurance Consultants, a 35-year old male in fairly good health can obtain a $250,000, 10-year Term Life policy for less than $15/month and less than $14/month for a female. A 45-year old male in fairly good health can obtain the same coverage for less than $25/month and less than $23/month for a female.
It is very clear that people both want to and need to save money these days. Most financial professionals agree however, that insurance is the foundation to a solid financial plan and rather than not obtaining individual coverage at all, in these difficult times, people should just downgrade a bit and look at 10 or 15-year Term policies instead of 20 or 30-year policies. Most people can obtain quality protection to help them achieve financial independence, without draining their wallet – it simply comes down to finding a financial professional who is truly willing to help and look to the client's best interest!
About MR Insurance Consultants
MR Insurance Consultants is a web-based insurance firm based in Bethesda, MD. The firm specializes in Life and Disability insurance for individuals, families and businesses across the United States. They provide comprehensive information through each of their websites, comparative quotes and personalized advice on how to obtain the best coverage for a person's circumstances. MR Insurance Consultants prides themselves on the customer service they provide and their devotion to every client's development. MR Insurance Consultants can be reached toll free at 1-800-817-4522.