Benefits Of Estate Planning in Glendale and Sherman Oaks, CA

Posted by myagentla on January 9th, 2022

Protecting one’s assets become essential when a person reaches middle years. Long-term investments are also considered to make post-retirement life comfortable. Sadly, not many individuals stop to think about the prospect of being unable to move or work. Disability needs to be considered when an individual invests in insurance policies that enable one to be compensated for almost every eventuality in life. It, therefore, makes sense to think about adding disability insurance in Glendale and Brentwood, CA. The options are too many to be appropriately chosen. While the best disability coverage must be planned as per one’s requirement, it certainly helps to consider the following criteria before deciding finally:

Individual/Group Insurance- Many companies offer group insurance to their prized employees as a benefit. The premium cost may be borne entirely by the employer or divided between the employee & employer. Unfortunately, there is no need to be satisfied with the coverage offered for disability. It is shocking to note that “The Employee Retirement Income Security Act of 1974 (ERISA)” is advantageous for the insurance carrier than the insured person. The only plus point is the premium cost that may be minuscule or even come for free when the employer takes on the entire burden. It may be a better option to go with an individual plan here. A denial by the insurance company may be challenged with the “state bad faith law” and the “deceptive trade practices act.” The individual must make sure to include both long-term & short-term disability in the coverage to obtain the maximum benefit when required.

Portability- A disability insurance coverage is something that should not be let go at any stage of one’s career. However, not many employers agree on the portability issue and will disallow continuance of the coverage when the employee moves to another company. It is advisable to look at individual options when an employee wants to change jobs for a better prospect. An individual plan will remain in force as long as the premium is paid.

Cost of Living Benefits- This is not included in every disability policy. One should try to find a policy that includes this benefit. It can be added to a conventional policy as a rider that can provide financial stability after disability even as inflation makes living costs too high for comfort. Insurance experts recommend buying a plan that adds t the compensation coverage on a compounding basis. This can provide invaluable assistance in following the living style that one is accustomed to.

Collection of Compensation - The time for providing the benefits varies from insurance carrier to carrier. It is best to choose one that is reputed to begin disbursing the money within a month of filing a disability claim. However, multiple companies keep delaying the process and may take up to 70 days to provide the benefits. Such carriers should be avoided at all costs.

People with considerable assets should be careful to do estate planning in Glendale and Sherman Oaks, CA, to avoid putting heavy tax burdens on their heirs.