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Anyone out there ever hurt themselves and then find out that the insurance plan they bought 20 years ago for self-employed people has a waiting period of 6 months ( and we all know how expensive Disability Insurance is for us self employed people !!)A one person shop could go out of business fast not bringing any income in for that period. Any advice would be greatly appreciated. A person needs a lawyer just to explain all the fine print in the paperwork they send you !
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Disabilty insurance is confusing and expensive. I shopped it around but eneded up using a full service broker who was able to help me pick the best coverage that I could afford. Mine kicks in after 3 months. It was my accountant that talked me into getting it. He got cancer and was able to sell his business and take the time to focus on getting better, which he did, and then went back to work for the guy he sold it to. Without insurance he would have had to keep working and might not have recovered.
I the one I had years ago was inexpensive to start with and reasonable clauses, then the premiums went thru the roof.
My Accountant advised me to invest a similar amount or a percentage of my regular income and only use it in case of emergency.
5% will give you nearly 3 weeks income after a year ... more after that when the interest kicks in. Of course a higher % gives you a better income quicker. But at least the money is still yours!
Mine's been going over 10 years now, and covers my income for a considerable period. I have resisted a few times to touch it and struggled thru, imposing my own "kick in" date.
It's shortly going to be a nice "nest egg" to suppliment my Superannuation when I retire in a few years if all goes well.
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After the Heart Attack Scare 2 weeks ago we have been looking into it a little more. I did find out that I do have a small one on my Health insurance Policy.. Something like $100 a day. Better then nothing. At least that would make my House bills and maybee a little food.
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Thanks alot guys for your comments. I really thought alot more people out there would have more to say on this subject. Stay safe and thanks for taking the time for me. I always appreciate the time you people give, because working for ourselves ,it ain't easy taking time sometimes !! Debb
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Hiya Deb, This is why having a good relationship with your insurance agent is so important. He or she needs to understand what you do and, more importantly, what your wants and needs are. However, since every business and every situation is different, it can be rather difficult to give you a straight answer that you can take to the bank. My solution, as an employee of the corporation, is to work part-time for a company that offers great benefits, which includes disability. If I do get hurt or disabled, it won't pay for everything, but it will help out. The hours I work don't really interfere with the business and the extra few dollars a week have helped with the bills through the slow times.
Havin' fun,
Checkers
-------------------- a.k.a. Brian Born www.CheckersCustom.com Harrisburg, Pa Work Smart, Play Hard Posts: 3775 | From: Harrisburg, Pa. U.S.A. | Registered: Nov 1998
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I think of disability insurance as part of my overhead. Just as van insurance and liability insurance. It's a part of the $ I charge per hour. If you don't have it, get it. Charge a bit more an hour. You can't afford not too. Think of the # of hours you put in a year, get the estimate and divide it by that many hours and raise the rates appropriately. (add a bit in for Beer money too, its Friday!)
-------------------- Deri Russell Wildwood Signs Hanover, Ontario
You're just jealous 'cause the little voices only talk to me. Posts: 1904 | From: Hanover, Ontario, Canada | Registered: Dec 1998
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Disability insurance, medical insurance and retirement planning are not easy subjects to talk about. Especially if you are not doing it. Who wants to tell the World they are too dumb and/or broke.
I'm a good example. When times were good, we actually had a Disability Plan that included medical costs not covered by the Government. It was very expensive. Somewhere along the way, it was one of the expenses that got cut.
Hindsight is always 20/20. It's easy to play the blame game, but too late to change the past.
Early Christmas morning back in 1993, I had the first of 4 heart attacks. Everyday in the hospital meant another day without income. When all your income is generated from one source, it's a terrfying experience. We still had 4 kids at home, mortgage payments, shop rental and all the rest. What a nightmare!
I'm not qualified to give advice here. In a perfect World we would all be great business people. Our shops would produce enough income to cover all expensives. We'd have paid sick days, long term disability, maternity leave, huge pensions and all the other perks many other people enjoy.
If you detect a hint of bitterness, I have to plead quilty. As a result of my choices, I still feel carry feelings of anger and guilt. Anger and guilt towards myself.
There's really not much here that enlighten anyone on the risks involved in being self employed. If you are single, I suggest looking for an elected politition, or other government employee as a potential mate.
I can't end this post with such a cynical comment. There is an option if you act before the unthinkable happens. Find someone who has the benefits you desire and do what they do. It's never too late to change.
[ October 27, 2007, 04:05 PM: Message edited by: Steve Shortreed ]
-------------------- Steve Shortreed 144 Hill St., E. Fergus, Ontario Canada N1M 1G9 519-787-2673
Do as I did...years ago, before my Father passed away, the whole family was on his railroad health insurance, shortly after his death, the rates climbed beyond belief...not having the money to continue "playing" their game, I cancelled the insurance... As I was already accustomed to paying out a certain amount each month, I continued to do so, but into an interest bearing savings account...as it were when I got sick, I had not only enough funds to pay cash, the cash price was substantially less then if billed to insurance...needless to say, the entire thing took all, but at a rate far less than if an insurance company had been paying the bills....so my stand is, Insurance companies not only hamper your care, they pay more out of their funds, causing deficits that someone else must make up, hence, larger insurance payments from the masses and half assed care, as doctors know the insurance companies WILL pay eventually, and no one is holding them accountable, unlike when you're dealing one on one, paying cash....it really puts into perspective the saying about "money talks, BS walks"...........
-------------------- Frank Magoo, Magoo's-Las Vegas; fmagoo@netzero.com "the only easy day was yesterday" Posts: 2365 | From: Las Vegas, Nv. | Registered: Jun 2003
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Hi Deb, I am one without disability, stupid maybe but have contributed to rrsp's regularly for years and have built up considerable equity,honestly, a good portion of that thru inheritance which of course is a crappy way but part of life none the less, atleast we had equity before we built the new shop! This is my first thing done in here, moved in about an hour ago. Have you checked thru the sign association?l know they have plans, the local chamber of commerce will also have plans, and should be trustable to have a good one.I too found disability too expensive to get a plan that kicked in in less than six months. We have 2 businesses which should help if something goes wrong and loads of life insurance on each other to pay all bills.You may also want to check out"return of premium" plans, they cost more per month but pay back a good whack'o'cash if you don't collect for a set number of years, a good reasdon to sub out installs and stay off ladders! hopr to see you again soon somewhere. p.s. at the risk of sounding preachy, keep your overhead low and charge what you're worth, and we are the first ones we have to convince of our own value, a point hammered home to me at many early letterhead meets which i will always be grateful for. We used to call shortreed the master of show no mercy pricing, but now it's me, likely because i suffered thru so many of his sermons!and i love when the first thing a customer says is " i hear you're really expensive"
-------------------- Pete Payne Willowlake Design/Canadian Signcrafters Bayfield, ON
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My kids are grown, Im 6 yrs away from Social security and am skating along with health insurance only.
Disability insurance when I looked into it was pretty high priced and having to document the income I was claiming proved difficult since some of us "un"..excuse me "self" employed show a small income after all the deductions.
When I get hurt or sick I have my own "plan". It's called "go to work and tough it out".
Everybody has "something" they have to suffer through. Mine just is rarely visible.
If it was affordable Id have it. I was an insurance adjuster in another life and am a believer in insurance. I've seen it bail out folks who'd be decimated otherwise.
But I'd like lots of stuff if I could afford it.
So ,don't worry be happy?
-------------------- Bart Robinson Bart Robinson Pinstriping Corpus Christi Texas Posts: 78 | From: Corpus Christi Texas | Registered: Jul 2006
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Did I really preach on pricing that much Pete? hahahaha I'm glad to be remembered for that, but the real truth is that I was not really practising what I was preaching. It's still great advise.
Today's Shortreed lesson is don't smoke! And cut back on impure thoughts.
-------------------- Steve Shortreed 144 Hill St., E. Fergus, Ontario Canada N1M 1G9 519-787-2673
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I've learned to except the fact that I am paying out $600.00 a month and it is little more than an admission ticket to the hospital...once I clear the door I know I and Pat are pretty much on our own!
God bless Canada...U.S. insurance companies are little more than theives.
-------------------- "Werks fer me...it'll werk fer you"
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yes steve, you did preach that much, we were all surprised when you showed up once with quills instead of a calculater at the sos picnic, and no, i'm not going to mention children of the corn, crop (crap?) circles, late night scratchy critters scaring you city kids or any of that stuff, and monte, canadian health care is getting more like one of those 'do up in the back' hospital gowns all the time, YOU ONLY THINK YOU'RE COVERED
-------------------- Pete Payne Willowlake Design/Canadian Signcrafters Bayfield, ON
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Here's my 2 cents! If you are self employed and get hurt, you are basically screwed.Unless!..........you are an illegal alien working in the US! They are able to walk into a hospital, get treated and walk out! Ever wonder why your insurance is so high? You are paying for their bills. New York State is trying to give them (Illegals) Drivers Licenses now!! Must be so they can drive themselves to the hospital!
-------------------- Tony Vickio The World Famous Vickio Signs 3364 Rt.329 Watkins Glen, NY 14891 t30v@vickiosigns.com 607-535-6241 http://www.vickiosigns.com Posts: 1063 | From: Watkins Glen, New York | Registered: Sep 2001
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Thanks everyone for all your kind (and funny ) comments.I guess at the time of writing in about this matter, I bought the insurance 20 years ago and never got around to reading ALL the fine print.....all you "Fresh" signshops... read the fine print !!!.. .. cause 6 months is a long time to wait for any money !! I believe insurance is always a good thing to buy, especially for us self employed people and letting our younger generation of signshops that are opening up realize how important the "Fine print" is to read on such things. This is a great avenue to let loose on topics such as this one...thanks again everyone!! p.s. Nice to hear from you Pete .Would have loved to seen you at Brian"s ranch this past summer and also nice hearing from you too Deri !Thanks again everyone!
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would have liked to be there, but a trip to san diego, new shop,kids that still talk about the last meet out there and learning to carve from Nancy and Noella, no way i could go without'em and wouldn't want to any way, but all those plane tickets get expensive, that's why i wasn't in moosejaw either.Maybe when queebec separates it will be a shorter drive?
-------------------- Pete Payne Willowlake Design/Canadian Signcrafters Bayfield, ON
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I have an insurance that covers half my salary. It cost me $135/month. It would'nt get me rich but would cover what I would need to be back on track, things like food!! Like you said there is a waiting period before they start paying. depending of how much you want to invest in your insurance, mine has a 6 weeks, which is not bad. My mortgage is also covered and most of my monthly payment too.
The bad side is not only being covered, but all the customers you can lose while you can not service them.
This is part of the risk you are taking when working on your own. And that is why I quit playing hockey years ago!
My 2 cents...
-------------------- Pierre Tardif P. Tardif Inc. 1006 boul. PIE-XI sud Val-Belair QC. Canada G3K 1L2 418-847-4089 pierre@ptardif.com Posts: 800 | From: Quebec city | Registered: Aug 2002
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I got disability insurance several years ago, based on the salary I was making at the time-- I got it from Northwestern Mutual, a very reputable company. They have been great to work with and it's not as expensive as you might think.
-------------------- Michael Clanton Clanton Graphics/ Blackberry 19 Studio 1933 Blackberry Conway AR 72034 501-505-6794 clantongraphics@yahoo.com Posts: 1735 | From: Conway Arkansas | Registered: Oct 2001
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Best insurance is Medicare plus a suplemantal such as AARP!
Trouble is that all you young pups don't qualify!
Just got home yesterday from a total hip replacement. I'm outta commission for at least another month. Other than loss of income, no cost to me...and since I only work part time...no big deal!
My advice...hurry up and get old!
-------------------- Si Allen #562 La Mirada, CA. USA
(714) 521-4810
si.allen on Skype
siallen@dslextreme.com
"SignPainters do It with Longer Strokes!"
Never mess with your profile while in a drunken stupor!!!
Brushasaurus on Chat Posts: 8827 | From: La Mirada, CA, USA | Registered: Nov 1998
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If you are still looking, my experience with disability insurance was a nightmare. Workman's Compensation, which you have to have if incorporated. Employee died on the job and we were told the widow was entitled to insurance. Only problem was every time we tried to contact the insurance company, they would have another excuse. Like the records were moved to another city and this went on for three years. After the three years were up. they called finally only to tell us that the limit was three years and next time we would have to hire a Workman's Compensation lawyer. How do you like that for all the high premiums payed for years? Bill
-------------------- Bill Riedel Riedel Sign Co., Inc. 15 Warren Street Little Ferry, N.J. 07643 billsr@riedelsignco.com Posts: 2953 | From: Little Ferry, New Jersey, USA | Registered: Feb 1999
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