Wednesday, November 18, 2009

What You Should Know About Business Overhead Policies

According to the U.S. Census Bureau, approximately one in five Americans will experience a disability that prevents them from working for at least six months. 30% of workers between the ages of 35 and 65 will suffer a disability for up to 90 days; and one-fifth of that age group will be disabled for five years or more. Given these statistics, it is not surprising that most business owners and professionals with their own practices believe that purchasing a Business Overhead Policy is a necessity. For the most part, they are correct.

Business Overhead Policies pay a monthly benefit to cover expenses if the business owner is unable to work due to disability. These can include rent or mortgage, salaries, office equipment and supplies, malpractice insurance, and utilities, among other expenses. The assumption is that by purchasing a Business Overhead Policy you will protect your business and will be able to meet your monthly business obligations. That way your business still will be there when you recover; or, if you don't get better, you still will have something worth selling.

Although policies differ depending upon the coverage you purchase and the insurance company you purchase from, as with other insurance claims, most insurance companies are not anxious to pay out the benefits you've paid for, even when your disability is obvious. Also, keep in mind that Business Overhead Policies were not created to keep your business running without you forever. Rather, they were created to help you meet your monthly expenses during the time of your disability and/or until you are able to sell your business or practice. Think of a Business Overhead Policy as a temporary safety net and nothing more; a necessity but not a panacea. If you are permanently disabled and cannot run your business or practice, a Business Overhead Policy will not solve all of your problems.

And, just because you have purchased a Business Overhead Policy does not necessarily mean you will receive the maximum allowed by that policy every month. For example, if you purchased a policy that pays up to $20,000 a month, and your expenses for one month are only $15,000, the insurance carrier will only pay you $15,000. On the other hand, if the next month your expenses are $35,000, the insurance carrier will only pay you the maximum allowed in your policy - $20,000.

For the professional or business owner, Business Overhead Policies are an essential part of life. However, be aware of their limitations, select your policy carefully, and consult with a disability attorney or financial expert before making a final decision or filing a claim.

For a free consultation, you can contact DeHaan Busse LLP at: info@dehaanbusse.com

Thursday, November 12, 2009

CONTINUATION OF YOUR FERS DISABILITY ANNUITY

Federal employees, here’s something you should be aware of. Even after your disability claim has been approved, and after you have been receiving your disability retirement annuity, the Office of Personnel Management (OPM) still may require additional medical reviews from you to determine whether or not you have recovered from your disabling condition. This means that you may need to provide the OPM with updated medical documentation from your treating physician, or OPM may require you to have an annual physical examination, or both. Additionally, you will be responsible for all of the expenses related to your medical reviews.

Just as disability filing deadlines can affect the outcome of your claim, so too can your response or lack of it to the OPM’s request affect your benefits. You must respond. Failure to do so may result in a suspension of your disability annuity. Your disability payments will cease until it is proven that you continue to be disabled, creating a great deal of stress in your personal life. It’s best to avoid this and pay attention to any and all requests from the OPM.

Based upon the results and analysis of your medical review, the OPM may find that you have recovered from your disability. In that event, your disability annuity will be discontinued one (1) year from the date of your medical exam or review, or your annuity will discontinue when and if you return to the federal work-force – which ever comes first.

If and when you recover from your disability, you may be eligible for priority referral under the Interagency Career Transition Assistance Plan for Displaced Employees. Of course, there is no guarantee that you will be able to return to your former job position or that there will be another job position available for you. It simply means that all Federal agencies will consider you for positions you are qualified for. However, to benefit from this policy, you must apply directly to the agency (or agencies) with the specific job vacancy you are interested in. It is important to remain proactive through this entire process.

It also is wise to seek the advice of an attorney who focuses on FERS/CSRS disability law. He or she can help you to file a claim, obtain your annuity, and respond to the OPM when you need to. As with most government programs, the FERS/CSRS disability claims process can be cumbersome. An attorney knowledgeable in FERS/CSRS disability law knows the deadlines, the procedures, and can help to alleviate the stress so that you can concentrate on recovering.