Re: Full Timers out of Luck

"Lone Haranguer"
| > | >
| > | > | One could ask why, if he was making $150k per year, he couldn't
afford
| > | > | disability insurance.
| > | > |
| > | > | The premiums are not that great and that's exactly the situation
the
| > | > | policies are designed for.
| > | > | LZ
| > | > |
| > | >
| > | > Disability insurance carries are often shielded by ERISA which
allows
| > them to abuse the claimants and the system to the point that many are
forced
| > into bankruptcy and lose everything they have in the process. Some
suffer
| > divorce others are driven to suicide.
| > |
| > | If you don't trust the insurance companies to honor their policies,
take
| > | the money you would have paid in premiums and invest them into an
| > | annuity which is not front-loaded.
| > |
| > | Use the nest egg during hard times.
| > |
| > | Some people have an excuse for everything. Do you drop your car
| > | insurance if you think a claim was not properly or fully paid?
| >
| > No, but I do have recourse to the courts if I feel their action is
| > egregious. In fact just this month deposited a settlement check. We
filed
| > in state court, insurance company moved to federal court, took 4+ years
but
| > we prevailed. Since judicial interest ROI is higher than a CD .... but
we
| > had the funds to ride the horse to the end of the process. (see comment
'run
| > the meter' below)
| >
| > | If you think you were screwed by your insurance company, contact your
| > | state's insurance commissioner and attorney general. It's their job
to
| > | see that the laws are followed by insurance companies.
| >
| > Under ERISA state insurance commissions and AG's have NO jurisdiction.
|
| ERISA is not concerned with auto insurances.

You used auto insurance as an example when the original discussion was
disability insurance. BTW ERISA does come into play where the auto
insurance is provided through an employer sponcered plan. (note the employer
is not required to contribute to the payment of premiums)

| Employee Retirement Income Security Act
| >
| > Legal relief under ERISA is very limited. Insurance company liability
is
| > limited to the amount of the service or coverage denied, no court or
legal
| > cost, no judicial interest, no damages.
|
| You have oranges while I'm talking apples. We're talking about insurances
| carried by individuals, nothing about employers and employees.

The majority of disability insurance is through the employer. Regardless
the insurance industry has been playing hell with private disability
insurance coverage as well. The question comes what's worse, having no
insurance coverage or insurance that fails to cover (i.e. pay off) when
there is a need?

FWIW if an individual has the availability of coverage through the employer
(often automatic) many insurance carries will not write private disability
or if they do, make the private coverage secondary and pay outs likewise
limited to the difference in what the person 'should' receive and 80% of
their pre disability income.

There is also the concept of off sets of what the disability insurance
carrier 'estimates' the claimant will receive from SSA when they are
ultimately approved. COBRA also makes these same assumptions, limited
coverage to 24 months as that's when Medicare should come into play under
the SSA rules. (Recall SSA is taking 48 months)

| Know anything about no-fault insurances?
| >
| The state of Minnesota follows the No-Fault system. This means that your
| insurance company will make payments for your injuries regardless of
fault.
| This is different from most states that use the Tort system. The no-fault
| system is applied differently from state to state. It is important to
| consult with your state insurance regulator to know the details of the
| No-Fault system. Visit our State Insurance Regulator section to find a
list
| of links to all state insurance regulators websites.
|
| The basic coverage required by Minnesota law is the 30/60/10 coverage.
This
| means that a Bodily Injury Liability of $30,000 per injured person and up
| to a total of $60,000 per accident is required. In addition, there is a
| Property Damage Liability coverage with a minimum limit of $10,000.
|
| Personal Injury Protection (PIP) is also a required coverage that helps
pay
| for "reasonable and necessary medical" expenses for you and your
| passengers. Per requirement, the minimum limit for Personal Injury
| Protection coverage is $40,000.
|
| Minnesota state law requires a minimum Uninsured/Underinsured Motorist
| coverage of $25,000 per person and $50,000 per accident for any bodily
| injury caused by the uninsured driver.
| **********
| If you run out of coverage you can still sue.
|
| I once held every insurance license available in MN except bail bonding.
|
| I consider my insurance costs reasonable for the coverage I carry. In
| addition to home and auto liabilities I carry a $1 million dollar umbrella
| liability that covers me ABOVE what my basic liability coverage is and
it's
| in effect no matter where I am or what I'm engaged in.

MN seems to be the exception in both limits and coverage.

Most don't have either the foresight or the need to have umbrella coverage.
They op for the legal minimums as their exposure is limited (recall sue a
beggar get a louse?). According to reports 30% of drivers don't have
coverage. Thus the availability of un/under insured motorist coverage.

I'm early retired and basically judgment proof but I do carry both med pay,
excess liability/umbrella coverage on my vehicles and property as it is a
reasonable precaution, at a reasonable cost and tends to reduce both my
exposure to legal action and the associated stress.

The fact is that even those with foresight, who undertake what most would
call prudent precautions, are blindsided when the hard really hits and the
insurance company bails.

I have hospice patients who have been on the SSA processing/wait list that
die before they are approved. I've actually been to their homes shortly
after their funerals when their spouse receives a notice that in the
judgment of the SSA ALJ the 'claimant is not disabled under the law as they
can sew buttons on shirts'. I kid you not, those were the exact words on
the SSA denial notice. Need I mention that the claimant, for the most part,
could not button his own shirt for years.

Given that, according to their own data and confirmed by the GAO, SSA has
legitimate claims (70%) unprocessed on average 48 months after application.

I ask you just how many folk can live without income in the face of
increased expenses for 4 years?

By the time I was 50 I could, but I did not have that ability in my 30s or
even my 40s.








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