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The Benefit Basics

February 2008

 
In This Issue
What is Long Term Disability (LTD) Insurance?
Should My Children Be My Life Insurance Beneficiary?
What is a Qualifying Event?
What is Long Term Disability  (LTD) Insurance?
By Steve Ashe
 
Physical Therapist

Long Term Disability (LTD) insurance is a type of disability insurance coverage that pays employees a set percentage of their regular income after a specified waiting period.  LTD insurance protects workers in the event they become disabled prior to retirement.  LTD policies are typically offered through employers as part of a standard benefits package.

Should My Children Be My Life Insurance Beneficiary?

By Ellen Lewis
 

Dad and sonChildren can be named as the beneficiary on a life insurance policy.  However, the insurance company will not send a large check to a three year old child.  There are several ways this can be handled.  One option is the insurance company will hold the money until the child turns 18.  Another option is the probate court can establish a legal guardian for the child, then the court papers can be filed with the insurance company and the guardian will receive the money on behalf of the child.

 

 

To make sure your children receive the benefit, establish a trust and guardian for the children now, and list the trustee as the beneficiary.  These are simple legal documents that can be drawn up with your will at a minimal cost.  These documents will also say who will raise your children and who will have control of their money, keeping the courts out of that important decision.

What is a Qualifying Event?

By Kristen Mumper
 
Married Couple

A qualifying event is a change in an employee's personal life that may impact their eligibility or dependent's eligibility for benefits. Employees experiencing a qualifying event can change benefit elections. In Ohio, the change must be made within 31 days of the qualifying event. 

 

Qualifying events include, but are not limited to, the following:

  • Marriage
  • Divorce
  • Change in dependent eligibility status
  • Spouse or dependent becomes eligible for Medicare or Medicaid
  • Spouse or dependent loses entitlement to Medicare or Medicaid
  • Change in your employment status or that of your spouse or dependent from either full-time to part-time, or the reverse
  • Start of your spouse's employment/eligiblility for benefits
 
QUESTIONS OR COMMENTS?
 
Do you have a question you would like addressed in our next issue?
Please email Laura Lauber at laural@horanassoc.com or call (513) 745-0707

Disclaimer

This eNewsletter is a digest of information published by a variety of web-based sources and is published as a service to our users. Horan Associates, Inc | Horan Securities, Inc. is not the author of the material unless specifically noted. We review each article to ensure that it is related to the interests of our subscribers. Horan Associates, Inc | Horan Securities, Inc. does not endorse the individual authors of these articles, although Horan Associates, Inc | Horan Securities, Inc. has reviewed these articles, for accuracy and completeness and your independent review for personal relevance should be undertaken. Reliance on this material should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. All articles are copyrighted to their publishers. This publication is intended for general information only and not as legal advice. You should discuss specific details with your advisor.

 

 

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