WHO IS ELIGIBLE FOR INSURANCE COVERAGE

Obviously any consumer who purchases a policy or is insured by his employer or through membership in a group, can obtain coverage. Government insurance is almost automatic. If you are injured in the workplace you are covered by workman's compensation. Disabilities ("any occupation" type) are automatically covered by social security wherever they take place. A person may also be eligible for benefits because of his relationship to the disabled party; i.e. because he is a spouse or dependent.

BENEFITS

Social security disability benefits are computed on a formula involving the disabled person's former salary and number of dependents he has and their ages. There is a maximum amount of coverage allowed per family. These benefits are tax-free from the federal government. Group plans pay benefits determined by computing a percentage of the insured's base salary up to predetermined maximums. For example, 60% of salary up to $2,000/month.

Individual policies can be purchased in any amount the consumer can afford within certain limitations set by the particular company. Insurers have "issue limits" which determine the maximum amount of monthly coverage they are allowed to write on a person. "Participation limits" are restrictions on theamount of coverage on any one individual that a company, according to its rules, is allowed to participate in writing along with other insurers. Naturally the limits for participation with other companies is larger than the issue limit would be. For example, an insurer might have an issue limit of $2,000./month and a participation limit of $3,500/month.

It is wise to look at disability coverage in the light of your insurance package. You may find you are covered under multiple sources such as workman's compensation, a group plan, individual supplemental and perhaps auto or liability policies your own or a third party's . You must check the coordination ofbenefit provisions along with the various elimination periods. Analyze your policies carefully to determine the definition of disability used in each case, the perils covered, the extent of the benefit period and the amount of benefit dollars available to you as compared with your normal and hoped for standardof living. If you find your present anticipated benefits would be inadequate but you don't want to add to your premium costs, consider setting dollars aside to invest in an emergency fund.

In your 20s and 30s when you are likely to have many dependents and few material assets, life insurance serves as an effective estate substitute. In the event of your premature death, your life insurance would provide economic support to those left behind.

In your 40s and 50s you probably have already acquired a home and other substantial assets. Now life insurance should be viewed as a savings and investment tool that helps build your growing estate.

In your 60s and 70s you have few dependents and a well built up estate. At your death your spouse will be taken care of by social security, pensions or other retirement funds. Life insurance, a protection against premature death, should now provide liquidity for your estate during probate.

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