Disability Risk Fact Sheet

  • One-third of all people between the ages of 30 and 64 will become disabled  sometime in their lives. (Source: Health Insurance Association of America)
  • At age 32, the chance of being disabled for 90 days is 6.5 times greater than the  chance of death. (Source: National Association of Insurance Commissioners)
  • Each year, one person in eight will suffer disability.  (Source: National Association of Insurance Commissioners)
  • Seventeen percent of American families (one in six) have at least one adult who is  disabled from employment. (Source: 2000 U.S. Census)
  • The likelihood of being disabled for more than three months is greater than dying in  any given year. (Source: Society of Actuaries)
  • Seventy-five percent of disabilities are caused by an illness rather than an accident.  (Source: Commissioner’s Disability Table)
  • In the first year following a paraplegia, living expenses average $259,531 per person.  (Source: National SCI Statistical Center, 2005)
  • Only 17 percent of small businesses offer disability coverage.  (Source: Life Insurance Market Research Association)
  • Forty-eight percent of VA mortgage foreclosures are attributed to disability.  (Source: FHA, Disability Income Concepts, 1998)
  • Eighty-two percent of American workers have inadequate or no disability protection.  (Source: Consumer Federation of America and American Council of Life Insurers, 2003)
  • Social Security Disability Insurance  (SSDI) is available if you have worked 10 years before becoming disabled; after five months of disability; if the expected duration of disability is more than one year. It pays an average of $894.10 per month. (Annual Report on the Social Security of DI Program, 2004)
  • Seventeen percent of American families (one in six) have at least one adult who is disabled from employment. (Source: 2000 U.S. Census)

Without a succession plan, a thriving business could fail in an instant.

Succession planning is critical to supporting the effective transition of a business from one owner to the next; whether that transition occurs due to a planned exit by the owner — like the owner’s retirement — or an unexpected or tragic event — like death or disability. Without a plan in place, a thriving business could fail in an instant, jeopardizing the financial futures of all those who rely on the business and its continued success.

Yet up to 60% of business owners do not have any formal succession plan for their business.

Give my office a call to discuss how to solve your business succession problems at 215-886-2122.

Mcdonalds

 

 

 

 

 

 

 

 

 

 
 

 

Long Term Care Insurance

Waiting to get older to buy your long term care insurance? 78% of people between the ages of 50-59 are approved for coverage when they apply, but that number drops to 56% at age 70. If your health changes while you’re “waiting to get older,” you might be out of luck. What’s your plan for long term care?  I could share all kinds of figures about cost and percentages that one will need care, I am sure you have heard it before, I would rather share the following.

Here is a story we have often shared about the subject:

“Barrel of Bricks”

Long-term care is one of those unexpected expenses everyone should plan for but few people actually do.

Consider this humorous accident report from someone who should have considered long-term care sooner.

I am writing in response to your request for additional information on my accident report.  In block number three of the accident reporting form I wrote, “Trying to do the job alone,” as the cause of my accident.  You said in your letter that I should explain more fully and I trust the following details will be sufficient.

I am a bricklayer by trade.  On the day of the accident I was working alone on the roof of a new six-story building.  When I completed my work I discovered that I had about 500 pounds of brick left over.  Rather than carry the bricks down by hand, I decided to lower them in a barrel by using a pulley, which fortunately was attached to the side of the building at the sixth floor.

Securing the rope at ground level, I went up to the roof, swung the barrel out, and loaded the bricks into it.  Then I went back to the ground level and untied the rope, holding tightly to it to ensure a slow decent of the 500 pounds of brick.  You will note in block eleven of the accident report that I weigh 135 pounds.

Due to my surprise at being jerked off the ground so suddenly, I lost my presence of mind and forgot to let go of the rope.  Needless to say, I proceeded at a rather rapid rate up the side of the building.

In the vicinity of the third floor I met the barrel coming down.  This explains the fractured skull and broken collarbone.

Slowing down slightly, I continued my rapid ascent, not stopping until the fingers of my right hand were two knuckles deep into the pulley.  Fortunately, by this time I had regained my presence of mind and was able to hold tightly to the rope in spite of my pain.

At approximately the same time, however, the barrel of bricks hit the ground and the bottom fell out of the barrel.  Devoid of the weight of the bricks, the barrel now weighed approximately 50 pounds.  I refer you again to my weight in block eleven.  As you might imagine, I began a rapid decent down the side of the building.  In the vicinity of the third floor I met the barrel coming up.  This accounts for the two fractured ankles and the lacerations of my legs and lower body.

The encounter with the barrel slowed me enough to lessen my injuries when I fell onto a pile of bricks and, fortunately, only three vertebrae were cracked.

I am sorry to report, however, that as I lay there on the bricks in pain, unable to stand, and watching the empty barrel six stories above me I again lost my presence of mind.  I let go of the rope.

Moral of this tale:  It doesn’t pay to try to do the job alone.

Maybe you should take a serious look at long-term care now to prepare for the time when you or your loved ones might need it.  I can help you evaluate your options and needs to avoid your “barrel of bricks.”

Give my office a call at 215-886-2122 and let’s have a conversation.

 

COBRA After Age 65 Can Be Dangerous For You

Medicare and COBRA May Not Be a Good Match

Which is Better – Medicare Medigap Plan F Or Plan G?

Medicare Plan F or G

Boomers Turning 66 Are The Last Beneficiaries Who Can Benefit From The Restricted Application Strategy!

Social Security Restricted Application

Create These 2 Key Documents Now

Power of attorney

LegalZoom defines power of attorney (POA) as, “a document you can use to appoint someone to make decisions on your behalf. The person you designate is called an ‘attorney-in-fact.’” There are three main elements for a valid POA: (1) the person signing the document (the principal) must be mentally competent and acting without undue pressure from anyone; (2) the document must contain the date of execution; and (3) the signature must be notarized or be witnessed by two unrelated adults. State laws vary, so see an attorney for advice.

There are several important reasons for having a POA. For one, if there is no designated agent, the state may step in and appoint a guardian, a decision over which the family will have no say. Also, it is critical to have a financial overseer if and when a senior’s mental health declines.

In practice, a POA is very flexible, suiting the needs of each individual family. It can be “special” or “limited,” meaning that authority is granted only for a set period of time or for a particular transaction. No other powers are given. Conversely, a durable power of attorney allows an agent to manage all the affairs of the principal for any length of time, although it does expire at the time of death. A springing POA goes into effect only when a specific, predetermined event occurs, i.e., the principal becomes incapacitated. It can be durable or limited. Also, the agent can be granted as many or as few powers as the principal wants.

Caution needs to be taken when choosing an agent, especially in regard to financial matters. Dishonest agents have used POAs as opportunities to steal from unsuspecting seniors. We encourage you and your loved ones to sign a POA, but never pressure them about who to choose.

In fact, it might be you who is chosen to take on the role of attorney-in-fact. Caring.com, an online resource for caregivers, offers the following tips for preparing to become a POA:

  • Create a caregiving team—people who can advise you and be the resource you need to make good decisions.
  • Consider all ramifications of a decision, not giving in to what others may think or pressure from doctors or professionals. Choose what is best for your family member.
  • Do some research on accounting, medical terminology, and counseling.
  • Give yourself permission to make mistakes.
  • Know the current state of affairs for the person you will be representing, both financially and medically.
  • Establish a cordial relationship with the rest of the family.

Health care directive

A health care directive is also referred to as a medical power of attorney or an advance directive. LegalZoom defines a health care directive as a “document that explains a person’s health care preferences when he or she is unable to make those choice for him or herself.” Some directives may designate a health care agent, a person given the authority to make medical decisions on the principal’s behalf.

A health care directive is not the same as a living will. A living will is limited to situations when the principal is terminally ill or permanently unconscious. It does not apply to any other situations where medical decisions might need to be made. However, a living will can be useful to give some guidance to the health care agent.

WebMD gives these guidelines about choosing, or helping a parent choose, a health care agent:

  • Choose someone you trust, who knows you well and who can handle stress and emotional turmoil.
  • Consider medical issues and your care options, then take the time to put them in an advance directive and/or discuss your values and preferences with the agent.
  • Don’t assume that a child or spouse knows what you want. Talk openly about your wishes.
  • It’s not possible to discuss every situation that would arise, so choose someone who knows what is important to you.
  • Check with your state about required documents. Make sure you complete everything.
  • Tell your family, doctors, and anyone else involved in medical care who your agent is.

We all hope our loved ones remain healthy and capable as long as possible, but the reality is that they will one day become compromised at some level. Be assured that getting your elders to choose now who will make decisions when they cannot is actually the best way to preserve their independence.