Long Term Disability

February 24, 2013

Nobody likes to think about what life would look like should disability occur. But the reality is one third of all Americans between the ages 35 and 65 will become disabled for more than 90 days, according to the American Council of Life Insurers. Loss of income can devastate families.  Long Term Disability Insurance is designed to cover lost wages in the event of a disabling accident or illness. Different policies have different stipulations but nearly all require a waiting period before disability payments begin and will reimburse for a pre-defined percentage of your income, generally 45% – 60%. There are two broad categories, Long Term Disability (LTD) and Short Term Disability (STD). Premiums and waiting periods will differ between the two types along short term and long term category lines.  Essential Insurance Concepts offers competitive plans and can provide valuable assistance in this area.

Many people don’t consider disability protection because they don’t think they would need it, or it is covered under employer health plans or workers’ compensation. Yet the need for disability protection is greater than for life insurance, at least when considering the probability of becoming disabled for some significant interval versus dying prematurely. Individual coverage is available, so contact Essential Insurance Concepts today.



The Patient Protection and Affordable Care Act, or Healthcare Reform, will have an impact on all employers in Texas. With the election over, it is almost a forgone conclusion that the Act will be implemented over the next several months.

There is no question that there will be significant issues facing employers over the next number of years. These issues will most likely mean higher health care costs and more administrative time.

The (PPAC) creates many questions for employers and we are here to help you design a plan of how to respond. Essential Insurance Concepts understand this and is pleased to announce the formation of our Benefits Group which will help our clients and prospects work through the new law. We now offer a wide range of life and health services and have access to a number of competitive providers.

Although many of the provisions of PPACA don’t take effect until 2014, the law — along with the continuing trend of skyrocketing health costs — is prompting many employers to take major steps during this enrollment season. Yet as employers begin to create strategies to adjust plan design and costs under PPACA, many still remain in the dark as to how to fully implement the law.

One drawback of the reform, is that there are no caps on health insurance premiums, so expect some rate increases. If you have more than 50 employees, you will have to provide coverage or pay a fine beginning in 2014. As of 2013, there will be new taxes on income for small business owners; we recommend you consult with your tax professional.

Employers with more than 200 full-time employees that offer health coverage to their employees will be required to automatically enroll new and current fulltime employees in one of the plans offered, with employees having the option to opt out.

Essential Insurance Concepts has already developed strategies for our clients. If you are concerned about the effects of reform please contact our office.