Planning For the Unthinkable—How Much Disability Insurance Do You Really Need?

New GoFundMe campaigns continue to be on the rise lately. If you’re active on social media, you likely scroll past them fairly often. This might suggest that more people are falling ill or getting injured at higher rates than before. But that’s not really the case. Rather, it’s Americans are still more likely to invest in life insurance than disability insurance, which leaves them unprepared to weather the financial loss when out of work. And, this is a conundrum for insurance advisors.

Many Americans know the statistics—we’re more likely to become disabled during our career years than we are to pass away. While it’s advisable to purchase life insurance to protect your family in the event of death, we need to do the same in case we fall ill or are injured.

In a recent Forbes article, we learned the Social Security Administration reported that 85.6% of men and 91.2% of women will survive to at least age 67. In the same report, it was projected that a 20-year-old man has a 26.8% chance of suffering a 12-month or longer disability. Those aren’t favorable odds, and that’s a long time to go without any income no matter your age at time of disability.

The Council for Disability Awareness released some startling statistics that should bolt Americans into action. It says:

• More than 51 million working adults in the United States don’t have private or employer-sponsored disability insurance.
• Only 48 percent of American adults have enough savings to cover three months of living expenses, while 52 percent have less or none at all.

Three moves to make right now to protect your family in the event you become disabled:

1. Buy long-term disability insurance first; short-term second. If you become disabled, the Council for Disability Awareness reports the average time away from work is nearly three years. You’ll need the lengthy coverage.
2. Buy more insurance than what your employer offers as part of your benefit package. You can often buy it through your employer, but private disability insurance stays with you should you change jobs.
3. Work with a professional advisor who can help you realistically estimate the benefit you need to maintain your financial lifestyle if disabled.

Ready For Open Enrollment Season? What You Need to Know About Buying Health Insurance For 2019.

January 1 is renewal time for many employer groups and individuals, and the one question on everyone’s mind is, “How much will my premiums increase?”

There’s no one-size-fits-all answer to this question, but according to an annual health care survey by the National Business Group on Health, most employers can expect the cost of medical and drug benefits to rise by at least 5% in 2019.

At Partners Benefit Group, we do expect some groups will see lower increases, if any at all, and others will face higher rates. We also anticipate that the majority of employers will continue to offer their employees high-deductible plans tied to a health savings account as a way to manage costs.

For those that buy individual health insurance policies, the renewal rates are anticipated to vary widely. In Georgia for example, there are four carriers that participate in the state insurance exchange. Alliant Health Plans and Anthem Blue Cross and Blue Shield have reported that premiums will actually drop by a nominal amount this year, bringing good news to its members. Ambetter of Peach State and Kaiser Permanente are reporting increases, however.

In a recent development, Blue Cross is expanding the number of counties in which it will offer ACA-compliant plans next year. In fact, most of metro Atlanta will be able to choose Blue Cross in 2019, which gives some individual buyers of health insurance a choice this year between carriers.

Here are three important things to know if you’re buying individual insurance in 2019:

1. You won’t face a tax penalty in 2020 if you opt out of health insurance. But, being uninsured is risky move. One serious claim can be financially devastating.
2. Open enrollment is only from November 1, 2018 – December 15, 2018; shorter this year so get organized early.
3. Subsidies to ease the cost of health insurance premiums have increased. Check Healthcare.gov to see if you qualify.