Bill is 50-year-old department manager for a mid-sized manufacturer. Even though he has never been seriously ill and has a clean family health history, he was recently told that he has cancer.

While the treatment will be long and difficult, Bill can take comfort in knowing that his employer-sponsored health insurance will pay most of his hospital and physician costs.

But Bill is about to be blindsided for a second time when he realizes that he will have no income to help support his family as he recovers from the difficult medical treatments.

Disability Insurance Myths - An Employee’s Perspective

During the working years, an employee is over three times more likely to be disabled than to die. At Bill’s age, the odds are still 1.8 to 1 in favor of a disability. In fact, thanks to advances in medical treatments over the last twenty years, deaths from the major illnesses (cancer, stroke, and heart disease) are down nearly one third, while disabilities from these same diseases are up by over 50%!

Yet Bill, like many workers, is only protected against the lesser risk.

Based on these statistics, you would think that every employee would ensure that he has disability insurance coverage. Unfortunately, many of today’s workers do not see the necessity for this insurance because, like Bill, they have been lulled into a false sense of security by a lifetime‘s worth of good health or the naive belief that unforeseen illnesses and accidents happen only to the unlucky few.

Disability Insurance Considerations From an Employer’s Perspective

Unlike the readily understandable benefits like paid vacation or health and dental insurance, disability income insurance can be more difficult to use as an incentive for workers to remain loyal, yet in time of need it will be the most appreciated part of the benefit package. Workers of all ages (yes, even those young employees who believe they are invincible) need protection from those surprises that can neither be predicted nor prevented. Disability Insurance is a benefit that a caring employer can provide, even if it is never needed, and it will engender a sense of loyalty when it is established with a thorough explanation.

2 Types of Disability Insurance

There are two basic types of disability insurance: short term (STD) and long term (LTD), neither of which should put an undo strain on a company’s budget. Employers have the option of adjusting the waiting period (the interval from the injury or illness to the start of payments) and the benefit period (the maximum amount of time for which the worker will receive payments).

In the case of STD the waiting period is generally up to two weeks, while the benefit period can be as little as thirteen weeks or as much as two years. With LTD the waiting period ranges from six months to two years, and the benefit period would last from a few years to a lifetime.

Employers also have the flexibility to require employees to contribute a portion of the premium, or they may choose to pay the entire amount themselves. There are a variety of paths that an employer can take to establishing a plan that fits the company’s budget and, at the same time, addresses the potential needs of the workers.

Disability Insurance - Putting it all Together

There is little doubt that disability insurance has advantages for both your employees and your company. Consider these:

• Group rates are lower than individual rates and, with the option of employee contributions, a plan can be established at a reasonable cost
• There are no medical exams, so all of your employees are automatically covered regardless of medical history
• Those valued employees who become temporarily disabled return to the company with a sense of loyalty and gratitude
• Waiting and benefit periods can be adjusted, which gives your business flexibility in designing a plan
• Hiring managers can use this benefit as a recruiting tool for inducing new talent to the company

Get the Right Disability Insurance Coverage

To learn more about your disability insurance options, give us a call at (800) 947-1270 or (610) 775-3848, or click here to contact us. We offer health and disability insurance protection from multiple competing insurance providers, so unlike single-brand companies, we're free to shop around to find the best deal on quality insurance protection. Contact us today to get started.

Do you live under a rock?  No?  Then it’s pretty safe to say that you’ve heard about the Affordable Care Act (ACA) – Also known as Obamacare - that was signed into law in March 2010. 

It may also be safe to say that you don’t completely understand it and the implications it imposes on your small business, including health insurance requirements for your employees.  We would like to simplify it for you.

What is Affordable Care Act?

The Patient Protection and Affordable Care Act (Affordable Care Act or ACA) created several health insurance reforms that were designed to ensure that all Americans have access to quality, affordable health insurance. 

What are the Health Insurance Impliccations for Small Business Owners?

The ACA requires that all employers with 50 full-time equivalent (FTE) employees or more must offer health insurance to full-time workers or pay a penalty.  If you have less than 50 FTE employees, you are not required to provide health insurance.

Although it’s important to understand its implications, you may be surprised to learn that ACA doesn’t affect as many businesses as you might think.  According to obamacarefacts.com,

• 90% of US firms have less than 20 full-time employees
• About 96% of firms have fewer than 50 full-time employees.
• Less than 0.2 percent of all firms (about 10,000 out of 6 million) face employer responsibility requirements.
• More than 96 percent of firms with 50 or more employees already offer health insurance to their workers.

Here are three provisions of ACA specific to health insurance for small businesses: 

The SHOP Marketplace - an online health insurance exchange - is open to employers of 50 full-time employees or less. Insurance plans in the Marketplace are offered by private companies and cover the same essential health benefits. No plan can turn you away or charge you more because you or your employees have an illness or medical condition. The idea is that pooling insurance risks will increase small business purchasing power, provide more choices for them, and simplify the paperwork.

Insurance plans in SHOP are available through insurance brokers – like American Insuring Group - at no additional cost to you.

ACA offers incentives to small businesses that employ less than 25 full-time low- and moderate-income workers.  Credits may be worth up to 50 percent of an employer's insurance premium costs – helping to offset the cost of providing health insurance coverage for employees.

To qualify for the tax credit…

• you must have fewer than 25 full-time equivalent (FTE) employees,
• your average employee salary must be $50,000 per year or less,
• you must pay at least 50% of your full-time employees' premium costs, and
• you must offer coverage to your full-time employees through the SHOP Marketplace.

3)  Reporting and Notifications

The IRS has implemented new ACA-reporting requirements that small business must follow.  Some businesses…

• may be required to report the value of the health insurance provided to each employee on W-2 forms
• may need to officially notify their employees in writing about the new health insurance Marketplace.

Get Help - Find the Right Health Insurance for Your Small Business

Contact American Insuring Group at (800) 947-1270 or (610) 775-3848.  We can help you:

• Determine if your business has 50 or fewer employees and is eligible for SHOP
• Apply for health insurance for your employees
• Review and compare price, coverage, quality, and other important features of available SHOP plans
• Enroll in the SHOP plan you choose
• Help you understand eligibility for the Small Business Health Care Tax Credit
• Answer your questions and guide you through the process
• Help you after you’re enrolled

Welcome to the Sandwich Generation?

Our world is changing.  The “typical” family has changed and people are living much longer due to advances in medicine.  These two ingredients have created a new generation – known as the Sandwich Generation. Gone are the days when a “typical” family consisted of a working husband, a stay-at-home wife and a couple of children.

Today, only 22 percent of all children under 15 are being raised by the “typical” family, according to a report for the Council of Contemporary Families.  Another 23 percent are being raised by a single mother, 7 percent live with a parent who cohabits with an unmarried partner, 3 percent live with a single father, and 3 percent live with grandparents.  In addition, nearly half of all American married couples are dual-career couples according to the Harvard Business Review. 

Plus, people are living longer.  When the 20th century began, life expectancy at birth in America was 47 years.  Today, newborns are expected to live 79 years. If we continue increasing life expectancy at the rate we have been, people will be living to 100 by the end of this century.  This means an increase in the number of aging parents – who are experiencing changing needs - will require some type of assistance.

According to Pew, “Nearly half (47%) of adults in their 40s and 50s have a parent age 65 or older and are either raising a young child or financially supporting a grown child (age 18 or older).” Nearly 30 percent of those aging parents need some type of assistance.

Long Term Care Insurance: Relief for the “Sandwich Generation”

Today, many individuals are responsible for the care of an aging parent.  Some turn to professionals for help – hiring a caregiver or relocating their parents to a facility that can meet their changing needs – but paying for this long-term care can quickly drain your bank account. Long term care insurance can help ease the financial burden.

Here are some average costs of long-term care in the US, according to Longtermcare.gov: 

$205 per day or $6,235 per month for a semi-private room in a nursing home

$229 per day or $6,965 per month for a private room in a nursing home

$3,293 per month for care in an assisted living facility (for a one-bedroom unit)

$21 per hour for a home health aide

$19 per hour for homemaker services

$67 per day for services in an adult day health care center

This financial burden often forces individuals to take it upon themselves to become the primary caregiver for an aging parent.  In fact, more than 65 million Americans are the care giver for an adult family member.  Before deciding to take this route, you should consider all of the “costs” this decision can create.

Financial Costs

There is almost always a financial impact if you become the caregiver.  Nearly half of family caregivers spend more than $5,000 a year on out-of-pocket caregiving expenses, and about a third spend more than $10,000 according to a recent survey. Those who leave the workforce to provide care lose an average of more than $300,000 in income and benefits.

Health Costs

As you focus on the needs of your loved one, it’s very easy to forget to take care of yourself.  About one in five family caregivers believe their health has gotten worse as a result of their responsibilities.  Between 40% and 70% of family caregivers of older adults have significant symptoms of depression. Other common health problems of family caregivers include increased anxiety, heart disease, hypertension, sleep problems and fatigue. Therefore, quality health care insurance coverage is key.

Career Costs

Becoming a primary caregiver can also affect your job.  Consider these statistics for working caregivers: 

• 60% say their duties have had a negative impact on their jobs

• 68% make work accommodations

• 64% arrive late, left early and/or took time off in the middle of the day

• 17% took a leave of absence

• 9% reduced hours or took a less demanding job

• 5% turn down a promotion

Relationship Costs

Being a full-time caregiver can change your family dynamics and put a strain on your relationships with your spouse and children. It can also create stress and conflict with siblings when it comes to topics like financial support and sharing the caregiving responsibilities.

The Solution: Long-term Care Insurance

Providing long-term care to an aging loved one will always be an emotional and often trying experience for families. If you don’t want to become a burden to your family, you should consider long-term care insurance to protect your family’s finances, provide choices, and alleviate many of the “costs” associated with long-term care.  Most importantly, long-term care insurance provides peace of mind for both you and your family. 

Take the first steps in learning about long-term care planning and find out how solutions like long-term care insurance can protect both you and your family.

For more information, contact American Insuring Group at (800) 947-1270 or (610) 775-3848.  

Let's Get Honest About Disability Insurance

Ah, disability insurance. You’ve probably heard that you’re supposed to have enough savings to pay your living expenses for six months.  Can you honestly say you have that much saved?   According to a 2013 Bankrate survey, less than one in four Americans do.  Approximately three-quarters of Americans are living paycheck-to-paycheck, with little to no emergency savings. 

So, what happens if those paychecks stop coming in due to an injury or an illness that prevents you from working? 

This is where disability insurance kicks in – it helps protect your paycheck. If you can’t work due to an injury or illness, disability insurance will pay a portion of your salary until you can return to work.  This can be a life-saver (or at least a "financial life" saver!).  So, why is it that only 49 percent of U.S. workers have short-term disability insurance and only 44 percent have long-term disability insurance? 

Here are the three misguided reasons why many individuals believe they don’t need disability insurance:

MISGUIDED REASON #1: I’m young and healthy.  Disability insurance is for older people.

THE TRUTH: The Social Security Administration estimates that the average 20-year-old worker faces a 3 in 10 chance of being disabled at some point before they retire.

MISGUIDED REASON #2: The government will take care of me.

THE TRUTH:  Most long-term disabilities are a result of an injury or illness that is not work-related, which means it wouldn’t be covered by Workers’ Compensation. If you’re relying on Social Security disability benefits, you should know the average monthly payment is just $1,100, which is lower than the United States Department of Health and Human Services (HHS) poverty level for a family of two.

MISGUIDED REASON #3: My employer will take care of me.

THE TRUTH: According to the US Department of Labor, seventy percent of private employers don’t offer long-term disability insurance. 

The Bottom Line on Disability Insurance

The average long-term disability claim is 34.6 months (just shy of 3 years!).  If you rely on your paycheck (and who doesn't?) you should have disability insurance. 

American Insuring Group can help you determine if you have enough disability insurance coverage or if you need an individual disability insurance policy to fill any gaps in the event of an injury or illness.  Contact us at (800) 947-1270 or (610)775-3848.

How Will the Affordable Care Act Affect Small Business Health Insurance Costs?

You would have to be living on a desert island or under a rock not to have heard of the Affordable Care Act (a.k.a. Obamacare).  But with all the partisan arguments about how wonderful or – conversely - how awful this new law is, it’s hard to separate the wheat from the chaff.  So, as Sgt. Joe Friday said, we’ll try to stick with "just the facts, ma'am."

Affordable Care Act Facts:

FACT: The Affordable Care Act (ACA) was passed by Congress and then signed into law by President Obama on March 23, 2010. 

FACT: On June 28, 2012 the Supreme Court rendered a final decision to uphold the health care law.

FACT: Open enrollment in the Health Insurance Marketplace began October 1, 2013 and ended March 31, 2014

That’s probably where the “facts” end.  The stated intent of the ACA was to offer affordable health insurance to every American.  According to the U.S. Department of Health and Human Services website, the ACA “puts consumers back in charge of their health care. Under the law, a new ‘Patient’s Bill of Rights’ gives the American people the stability and flexibility they need to make informed choices about their health.”  Few would argue with the value of the law’s stated goals, which are summarized as follows on the HHS website: “All together, these reforms mean that millions of people who were previously uninsured will gain coverage, thanks to the Affordable Care Act.”

What Impact Will the Affordable Care Act Have on Small Business Insurance Costs?

The full repercussions of the ACA on small businesses and their health insurance costs – and whether it’s truly “wonderful” or actually “awful” - won’t be known for several years; however, the Center for Medicare and Medicaid Services (CMS), which spearheaded the implementation of the law, presented a report to congress with a few predictions.  In the interest of “sticking with the facts,” CMS’s report states, “There is a rather large degree of uncertainty associated with this estimate. The impact could vary significantly depending on the mix of firms that decide to offer health insurance coverage.”

CMS: 2/3 of Small Businesses to See Increased Costs

A recent Small Business Association poll found that 96 percent of small businesses said their health insurance premiums have significantly increased over the past five years, with average monthly insurance costs increasing from $590 per employee in 2009 to $1,121 in 2014.  CMS’s research indicates those rates will continue to rise.  The CMS report states that the new rules, such as requiring that insurers offer guaranteed health coverage and insurance renewal options to small employers and preventing insurance companies from varying their rates based on a company’s industry or the age of its employees, will most likely drive up the price of insurance for many small businesses. 

The report estimates that 65 percent of small businesses are expected to experience increases in their premium rates, while only 35 percent will see a reduction. Businesses with exceptionally sick or at-risk workers will benefit most from the new provisions.  The effect on large employers is expected to be negligible, since many larger companies run their health insurance programs in house. 

What Can You Do to Control Your Business’s Health Insurance Costs?

American Insuring Group can help you navigate through the complexities of the new ACA rules and ensure that you get the best health insurance premiums available.  Contact an agent at (800) 947-1270 or (610) 775-3848 for more information about health insurance and the Affordable Care Act.

Want to learn more? Download our free report: 10 Things You Should Know About Health Insurance Under the Affordable Care Act

Do you believe that your employees are one of your most valuable assets?  Do you think of your employees as an investment rather than an expense?  

The fact is that happy, engaged, and loyal employees work harder, provide better customer service, and stay with you longer. That's why great benefits, especially health insurance, can be crucial to attracting and retaining the best employees.

Consider these facts:

• The average cost of recruiting, hiring and training a new employee is close to $4,000, according to an article in Entrepreneur Magazine.
   
• The companies listed on Fortune’s ‘100 Best Companies to Work For’ list experienced stock prices that rose an average of 14% per year from 1998-2005, compared to 6% for the market as a whole, according to a study from the Jackson Organization. That's more than double the norm, and suggests a strong link between employee satisfaction and company performance.

If you truly value your employees, it's important to do more than just say that you value them, so prove it to them via their health insurance, life insurance, and other benefits!  If you don’t show you care about their needs, they'll be less motivated to care about your company or their work, and your bottom line will suffer as a result.  If you want to stand out as an employer and attract real talent, it’s important to do what you can to ensure that your employees are healthy and happy – both physically and financially.

Start with a Good Employee Benefits Package

A good employee benefits package is a great place to start.  Unfortunately, during these rocky economic times, many companies are tempted to cut employee benefits.  This “cost-saving” measure will most likely backfire on you by creating less motivated employees and a higher turnover rate.

Mandatory Employee Benefits

While some benefits are optional, all employers are required to provide employees with the following benefits:

• Give employees time off to vote, serve on a jury and perform military service.

• Comply with all workers' compensation requirements.
   
• Withhold FICA taxes from employees' paychecks and pay your own portion of FICA taxes, providing employees with retirement and disability benefits.
   
• Pay state and federal unemployment taxes, thus providing benefits for unemployed workers.
   
• Contribute to state short-term disability programs in states where such programs exist.
   
• Comply with the Federal Family and Medical Leave Act (FMLA).

Providing additional benefits, such as health insurance, dental, vision, and life insurance plans will attract better-qualified candidates, ensure higher retention rates, and increase your bottom line. 

We Can Help You Craft a Better Employee Benefits Package

Contact American Insuring Group at (800) 947-1270 or (610) 775-3848 to discuss affordable health, life, and workers compensation insurance plans to make yours a better company that attracts and retains the high-caliber talent you need to excel in the marketplace.

There is a lot of uncertainty these days regarding what is required under the Affordable Care Act, also known as ObamaCare. Businesses and individuals alike are concerned they may be penalized or miss out on important information needed to keep their health insurance in tact and affordable.  

With that in mind, here are 10 things you should know:

1. As of January 1^st 2014, every person must be insured under a Qualified Health Insurance Plan.
    
2. If Employer Coverage is not offered, it is the responsibility of the Individual to purchase insurance independent of their Employer.
    
3. If a person is not insured in 2014, they will be faced with an Individual Tax penalty equal to $95/person or 1% of your taxable income…whichever is greater!
    
4. The Initial Open Enrollment period ends March 31^st, 2014.
    
5. Health plans sold after January 1, 2014 must include a list of 10 Essential Health Benefits such as Maternity coverage, Mental Health coverage, Prescription coverage, Pediatric Dental coverage, etc.
    
6. Health Plans will fall into 4 Metal Levels (Platinum, Gold, Silver, Bronze) and also include a catastrophic coverage option for those under 30 or for those meeting specific hardship guidelines.
    
7. There is premium assistance for people making between 100-400% of the Federal Poverty Level.
    
8. In addition to premium assistance, there are cost sharing subsidies (reduction in deductibles and out-of-pocket expenses) for those between 100-250% of the Federal Poverty Level.
    
9. The only way to claim the Premium Subsidy (Advance Premium Tax Credit) and the Cost Sharing Subsidies is to apply with the Federally Facilitated Marketplace (FFM).
    
10. Because the FFM is temperamental, the best way to apply and evaluate your coverage options is to contact a CERTIFIED Licensed Producer for assistance.

Looking for help in obtaining the right health insurance coverage for your employees or family?

Contact us today at American Insuring Group or request a free health insurance quote.

Do you want to become a burden to your family? Of course not.

Do you have homeowner’s insurance to protect your home in case of a fire?  Chances are you do.  It’s a very scary thought and – wisely - very few people think twice about protecting themselves against such a possibility. 

Less Than 8% of Adults Have Long Term Care Insurance: Why?

OK, next question… Do you have long term care insurance (LTCI)?  There’s a good chance that your answer is no.  Recent statistics show that less than 8% of U.S. adults and about 10% of seniors have long-term care insurance.  And yet, nearly 10 million people in the U.S. (37% under age 65 and 63% over age 65) needed some form of long-term care in 2000 (see http://longtermcare.gov/ for more information).  It’s estimated that almost 70% of people turning age 65 will need long-term care at some point in their lives. 

Bottom line… Your chances of needing to make a claim for long-term care are considerably higher than making a claim for a fire.

What Exactly is Long Term Care Insurance?

LTCI helps pay the cost of care for seniors or individuals with disabilities if they should ever need it over a long period of time.  It helps pay for the cost of care for individuals unable to perform the basic activities of daily living (ADLs) -- such as bathing, eating, getting in and out of bed, dressing, and going to the bathroom – over a long period of time. 

Depending on the policy, LTCI may cover home care, assisted living, adult daycare, respite care, hospice care, nursing home, and Alzheimer's facilities. Certain policies will pay for a visiting or live-in caregiver, companion, housekeeper, therapist or private duty nurse.

The cost of an LTCI policy is based on:

• Your age when you purchase the policy
• The maximum amount that a policy will pay per day
• The maximum number of days/years that a policy will pay
• Any optional benefits you choose, such as benefits that are adjusted for inflation

What is the Cost of Long-Term Care and Who Pays for it if You Don’t Have LTCI?

According to the U.S. Department of Health and Human Services, in 2010 the average cost for long-term care was more than $6,000 per month in a nursing home, more than $3,000 per month in an assisted living facility, or $19-$21 per hour for a homemaker or home health aide. 

One of the biggest misconceptions about long-term care is that it’s covered by Medicare.  Medicare only pays for a maximum of 100 days if you need skilled services or rehabilitative care in a nursing home.  It does not pay for non-skilled assistance with Activities of Daily Living (ADL), which make up the majority of long-term care services. 

Medicaid pays the largest share of long-term care services, but only applies if your income is below a certain level and you meet minimum state eligibility requirements.

Other federal programs such as the Older Americans Act and the Department of Veterans Affairs pay for long-term care services, but only for specific populations and in certain circumstances

Benefits of Long-Term Care Insurance

More and more people are purchasing LTCI to protect themselves in the event that they need long-term care.  Some of the benefits include:

• Ensuring that you will be taken care of should you need long-term care
• Allowing you to live as independently as possible without burdening your family 
• Allowing you to spend family time with your children rather than caregiver time
• Protecting your savings
• Premiums paid on a long-term care insurance product may be eligible for an income tax deduction

Learn More about LTCI

If you want to ensure that you can live independently and not become a burden to your family and friends in the event that you need care over a long period of time, give us a call at (800) 947-1270 or (610) 775-3848 or contact us by email.  The sooner the better!

According to a May 2013 report by the non-profit Council for Disability Awareness (CDA), there is a sharp mismatch between the high value employees place on their ability to earn a living vs. their financial preparedness to handle a disability that would threaten their income as evidenced by having adequate levels of disability insurance.

Most are Ignorant of the Real Need for Disability Insurance

The report titled “Disability Divide: Employer Study” is based on a 2012 survey of over 500 human resources professionals. The key findings, as reported by the Insurance Word Blog, are as follows: 

• ¾ of HR professionals surveyed said employees viewed their income-earning ability as their most valuable financial resource, ahead of medical insurance, their homes, and retirement savings. However, only ¼ said employees considered it “very important” to prepare for potential disability, and a similar portion felt their employees were prepared to handle the financial hardships of the loss of income due to illness or injury.

• A prior CDA survey of over 1,000 wage earners yielded similar results, with most respondents stating they are most likely to agree with the statement, “I never really thought about” preparing for a potential disability.
   
• The HR experts surveyed generally felt that employees should begin planning for disability early in their careers even though most don’t begin until age 40 or older, if ever. According to statistics, approximately 100 million members of the US civilian workforce have no private disability insurance.
   
• Most of the HR experts as well as the wage earners dramatically underestimated the likelihood of incurring a disability during their careers.

Surprising Disability Insurance Statistics

The post goes on to quote some surprising statistics from the CDA’s Personal Disability Quotient calculator:

• An average 35-year old male office worker who is a non-smoker and has no health history issues has a 13% risk of incurring a long-term disability prior to retirement.
  
  
• For women with the same profile the risk is higher: 18% or nearly 1 in 5. Those surveyed had estimated their risk at only 1-2%.
   
• The 35-year olds noted above, if earning an average of $50,000 per year, are likely to earn approximately $2.4 million on average by the end of their careers.
  
  
• Clearly, the contrast between the risk of losing millions in income and the lack of disability insurance is striking!

Key Takeaways

Americans are much less protected against income loss than in the past due to several factors, including:

• The relative lack of solid pension plans
• Much lower savings rates
• Home mortgages with higher balances
• Rising college education costs
• Given the poor economy, the much greater likelihood of the need to continue to support children beyond their college years

What to do About Disability Insurance

Given these facts, the only wise course of action is to acquire the proper level of disability insurance to cover the gap between your current savings and the funding that would be needed to cover your financial needs during a long-term disability. If you are a business owner, the risks of inadequate disability insurance may be even greater due to the financial consequences of being unable to work.

We’re Here to Help if Needed

If you have questions on how to determine the right level of disability insurance you need to protect both you and your loved ones, then please contact us at 610-947-1270, or Contact Us online.