• Disability insurance is designed to pay you a portion of your income (typically 60%) while you are unable to work due to a covered accident or illness. You are required to be under doctors’ care for the period of time in order for benefits to be paid.

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• Maternity leave requires an employee to be off of work for a minimum of six weeks to recover from delivery, therefore disability insurance will pay benefits for the time you are required to be off of work stated by your physician.

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• There are multiple policies in the insurance market that defines short term disability. We have seen policies range from 6 months to 5 years of coverage for short term disability. Long term disability is typically coverage until the age of 65 if you were to become permanently disabled.

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• Through your employer you typically cannot purchase disability for your spouse due to the fact that it is based on your income with your current employer. We have seen policies through employers that enable you to purchase a small rider that could cover spouse. Disability insurance can also be purchased on an individual basis if your spouse is not offered disability.

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• Most policies have certain exclusions for this type of accident. Because your employer is required to file Workers Compensation you are not allowed to receive benefits from your disability policy as well. Be sure to look at your personal policy due to the fact that they all vary on this issue.

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• In most cases your employer will offer a benefits package that will include the ability for you to enroll in Disability Insurance. If your employer has a IRS Section 125 plan in force you will be allowed to enroll the same time once per year.

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• There are multiple term life policies that can range anywhere from 5- 40 year term. Cost will change based on the term and age of the insured. Most term policies will decrease in face value at the age of 65, so be sure to know how much it will decrease if you plan to keep your policy after that age.

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• Term life insurance does not accumulate a cash value. Term Life insurance is the most affordable life insurance available and gives you the ability to purchase the most amounts you need at a young age. Whole and Universal Life are policies that you can purchase that will accumulate a cash value.

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• Cancer insurance will protect your family from a financial hardship, which will help you focus on getting better rather than how you will pay for the medical bills for your cancer treatment. Benefits are paid to you to be used for cancer related expenses that health insurance might not cover.

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• The benefits received from your cancer policy will be paid directly to you unless you specify differently. Benefits are paid in addition to health coverage or any other cover age you may have.

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• Disability Insurance is designed to pay you a portion of your income while you are unable to work due to an illness or accident under doctors’ care. This also helps pay the bills associates with everyday living, house payment, car payment, etc. Cancer Insurance is designed to help pay the medical costs related to Cancer related expenses. If you were to have cancer you will really appreciate having both policies to know you and your family will be financially secure.

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• Accident insurance is designed to supplement the gap of what your health insurance will pay versus what you have to pay if you were to have an accident. These benefits are paid directly to you, therefore allowing you to have control how these funds are used. Accident insurance pays you benefits regardless if it occurs on the job or off the job.

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• A cafeteria plan is a separate written plan maintained by an employer for employees that meets the specific requirements of and regulations of section 125 of the Internal Revenue Code. It provides participants an opportunity to receive certain benefits on a pretax basis. Participants in a cafeteria plan must be permitted to choose among at least one taxable benefit (such as cash) and one qualified benefit.
  
  A qualified benefit is a benefit that does not defer compensation and is excludable from an employee’s gross income under a specific provision of the Code, without being subject to the principles of constructive receipt. Qualified benefits include:
       • Accident and Cancer
       • Medical Flexible Spending Account
       • Dependent care assistance;
       • Group-term life insurance coverage
       • Dental and Vision
  The written plan must specifically describe all benefits and establish rules for eligibility and elections.
  
  A section 125 plan is the only means by which an employer can offer employees a choice between taxable and nontaxable benefits without the choice causing the benefits to become taxable. A plan offering only a choice between taxable benefits is not a section 125 plan.

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• Under Section 125 of the IRS code, employees are reimbursed for eligible health care expenses that are not covered or reimbursed under their health plan. Typically, these include deductibles, co-payments and uninsured expenses, such as dental expenses, eyeglasses or hearing exams, all with tax-free dollars through your FSA plan. These are predictable expenses, as they can add up to hundreds of dollars a year.

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• The IRS guidelines allow you to use pre-tax dollars to pay for day care services provided to your children under age 13, as well as an incapacitated parent or spouse. Per IRS regulations, this can be a licensed day care provider or an individual as long as they provide a social security number. You are eligible if you are a single working parent, you have a working spouse, or your spouse is a full-time student for at least five months during the plan year while you are working or your spouse or dependent parent is disabled and unable to provide for his or her own care. Benefits provided under a Dependent Care Account are not taxable to the employee, up to an annual dollar limit of $5,000.

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• A Health Reimbursement Arrangement (HRA) is an account provided by and funded by your employer. BY setting up this account it allows your employee to enroll in a higher deductible health insurance plan thus allowing your health insurance premium. Under this plan you will be able to be reimbursed for a portion of your deductible and/or coinsurance. It covers eligible medical expenses and works in conjunction with your health insurance.

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