A long-term disability affects more than just the patient. Family members are often left to worry about the medical problem, treatment and how to meet day-to-day and future expenses. Planning for the potential cost of a long-term disability is something everyone should consider. For employers, participating in a long-term disability plan is one of the most effective ways to protect employees. Providing a benefits package that includes this coverage can help protect their paycheck and cover costs when something happens that will require long-term care. For many, saving for the unexpected isn’t possible or isn’t a priority. In a Federal Reserve Board survey, 53 percent of adults said they don't have a rainy day fund they could rely on for three months. “It’s difficult for some people to justify the need to have a long-term disability plan. There’s a misconception that because they have a great health plan, they think they’re covered,” says Rick Vaccarella, Specialty Benefits sales manager at Blue Cross Blue Shield of Michigan. “It’s highly possible and somewhat likely that if something happens and you’re out on disability, you still haven’t met your out-of-pocket costs. But don’t stop there; now factor in no income, paying out-of-pocket expenses and balancing other financial responsibilities.” Long-term disability plans can provide up to 60 percent of your gross monthly income during time off for a disability, which can make the policy expensive for an employer. “Employers should discuss their options with a Blue Cross Specialty Benefits representative. We have some tips that will help employers offer a long-term disability plan and save up to 30 percent on premiums, while protecting future earnings,” added Vaccerella. The Social Security Administration states that 1 in 4 people who are currently 20 years old will be disabled before they’re 67. That’s a staggering statistic that needs to be taken seriously. A long-term disability plan can help protect finances and peace of mind. Learn more about specialty coverage by visiting Blue Cross’s Specialty Benefits page and reading these other blogs:
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