Own Occupation Disability Insurance- Do you Need it?
Posted on January 14th, 2012
Before I share my thoughts about own occupation disability insurance, I thought I should give you definitions of True Own Occupation and Modified Own Occupation, as they arent always clearly identified.
True Own Occupation: Due to injury or illness, you cannot perform the material and substantial duties of your Occupation. You will be considered totally disabled even if you are gainfully employed in another occupation, provided that, due to injury or illness, you are not able to work in your own occupation.
Modified Own Occupation: Due to injury or illness, you cannot perform the material and substantial duties of your Occupation and you are not gainfully employed.
So, the difference in language is easy to see the main difference between the two is that in the True Own Occupation definition, you can work in another occupation and will still receive your full benefits (as long as you cant work in your occupation), whereas in the Modified Own Occupation definition, you will no longer receive your benefit for total disability if you go to work in another occupation.
I have to add that, if you have a Residual benefit in your policy, you might be eligible to receive a partial benefit if you are disabled per the policy language and you choose to work in another occupation. If you choose to work in another occupation and you have a loss of income of at least 20% (or 15%, depending on the policy), you could receive a percentage of your benefit based on your percentage of income loss.
Which Definition is Right for you?
When looking at both modified and own occupation disability insurance, I ask my clients, if, due to illness or injury, you cant work at your occupation, could you potentially work in another occupation (remember, this would be your choice not the insurance companys)? Many times, the answer comes quickly. A good example would be a surgeon with a hand injury. Clearly (unless robotics are involved), if a surgeon has a hand injury, he wouldnt be able to perform surgery, but might want to work in general practice or teach or do something else entirely. This person would be better suited to a True Own Occupation definition of disability.
However, take an Executive who works mostly at a desk. If she couldnt perform the duties of an Executive, the answer to the above question is most often No. In cases like this, especially if there are budgetary concerns, I would recommend the Modified Own Occupation definition (it is less expensive).
You will hear many arguments in the industry as to which definition serves the policy holder better. I cant argue with someone who tells me that the true own occupation definition is better than the modified definition because I would agree that a richer benefit is better than one that has restrictions on it. However, the question I ask that person is, If a benefit is better (and more expensive) but the person doesnt need it, is still a better benefit?
The bottom line is, benefits in a disability insurance policy should be tailor-made for each client and their particular needs. There are a lot of moving parts and cost factors to consider, so make sure you work with an agent/broker who works with several companies and understands this tailor-made concept. You will probably wind up with the policy and premium that fits your needs.
Tags: Disability Insurance, Insurance, Occupation Disability, Occupation Disability Insurance
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Significant increase in serious rent arrears
Posted on January 7th, 2012
Posted on January 04th 2012
Companies providing landlords insurance and other services to the residential lettings sector should take note of the latest warnings about tenant arrears.
Recent statistics published by specialist receiver company Templeton LPA show that tenant arrears have climbed significantly over the past year. For example, figures show that during the last quarter of 2011, the number of tenants more than two months in arrears had increased by almost 11,400 compared to the last quarter of 2010.
Although most renters pay on time, the increased incidence of serious rent arrears could mean that more landlords experience cash flow problems.
Tags: Arrears, Rent Arrears
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Workers’ compensation judgment against rapper Jay-Z to be vacated
Posted on January 5th, 2012
The rapper and hip hop mogul Jay-Z has been freed of an $18,000 workers compensation judgment in New York.
The New York Post reports that Shawn Carter, 42, Jay-Zs birth name, failed to pay workers compensation insurance between Sept. 30 and Dec. 30, 2009, for staff that worked at his office on Hudson Street in New York City.
A judgment was issued against him in November, 2011 after a complaint was filed in March 2011.
“After consulting with the employer’s insurer, the board expects this matter to be resolved in the next few days, resulting in the judgment being vacated,” Brian Keegan, a spokesman for the New York State’s Workers’ Compensation Board, told the newspaper Dec. 30, 2011.
Bottom-print car security
Posted on January 4th, 2012
Japanese scientists from Tokyo’s Advanced Institute of Industrial Technology have come up with an amusing idea that some drivers might not be so keen on for a variety of reasons.
Apparently our bottoms are as unique to us as our fingerprints, so naturally researchers have created a chair pressure sensor which scans the seated person’s behind in order to check who they are…
Using 360 sensors to make a 3D image of the – ehem – rear, the chair can identify the individual who is sat on it with 98% accuracy.
Apparently the scientists believe that the chair could replace the need to use computer passwords in offices and also render car keys obsolete as soon as 2014.
We have a few questions – what happens when you have something in your back pocket, or have gained or lost some weight? And more Read more…
The Greatest Harley Davidson Joke of All Time
Posted on January 2nd, 2012
A guy has a jonesing itch for a classic motorcycle.
He always wanted a big Harley, so he shops around, answering ads in the newspaper, having no luck.
One day he comes across a beautiful 1947 Knucklehead with a for sale sign on it. He checks it out, and its in mint condition. So he rings the bell and asks the owner the story. The guy comes out, kicks it over in one try, and it purrs like a kitten. Not an oil spot to be seen and not a breath of smoke around.
Ill take it, its cherry. But you gotta tell me how you kept it like this all these years.
Well, says the seller, Its pretty simple. Just make sure that if the bike is outside and its going to rain, you rub Vaseline on the chrome.
Tags: Harley, Harley Davidson
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Why Health Insurance Quotes Continued Rising In 2011
Posted on December 14th, 2011
There are several reasons why health insurance quotes continued to rise in 2011. The most common reason is the ongoing financial crisis, which continues to see increases in health care costs across the nation. Due to the economic crisis, several health insurance companies have lost a number of customers over the last two to three years. This is partially due to job losses, which make it difficult to keep up with monthly premium payments. In order to cover costs, several health insurance companies have raised premium rates by 5 to 15 percent. This helps offset the cost of extending existing coverage, as well as adding new coverage options and services.
Tags: 2011, Insurance Quotes, Insurance Quotes Continued, Quotes Continued
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