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Bills.com CEO Cautions Workers to Protect Livelihood With Life Disability...

The first U.S. life insurance policy was issued almost 250 years ago, on May 22, 1761, by The Corporation for the Relief of Poor and Distressed Presbyterian Ministers and of the Poor and Distressed Widows and Children of Presbyterian Ministers. On this anniversary, Andrew Housser, co-founder and co-CEO of Bills.com a free online consumer portal that provides financial tips and resources, suggests ways consumers can maximize life and disability coverage.



Today, insurance companies have shorter names -- but lives are longer, Housser said. Individuals may need life insurance and disability insurance more than ever.



Insurance professionals estimate one in eight people will be disabled before they retire. Those who would face financial disaster if they lost their income need disability coverage, Housser said. Similarly, those with families that depend upon their income need life insurance protection.



Housser suggests five steps to planning the right insurance coverage:



1. Check job benefits. Many employers offer life and disability coverage benefits. Review the benefits package to understand coverage offered, such as life insurance benefits, usually stated as a percentage of a year'ss salary.



2. Evaluate assets. In a financial disaster, insurance can help pay off a home, pay for children'ss educations, provide time and/or child care support for a stay-at-home spouse to re-enter the workforce, and even pay basic expenses -- plus health care deductibles and medical bills -- in the event of an illness, injury or death.



3. Understand disability insurance. Two types of disability coverage exist: Short-term and long-term. Short-term coverage pays benefits for disabilities lasting less than six months. Long-term policies provide benefits for longer disabilities. The benefit period varies, depending upon the policy. The period can range from a few months up to the beneficiary'ss 65th birthday.



Just as a new car comes with a few items standard and a broad array of options (with a higher price tag) when nicely equipped, disability insurance includes what you pay for, Housser explained. For example, two common definitions of coverage are own occupation or any occupation. Some policies pay only if a disability prevents the beneficiary from working at any job. While those policies are less expensive, many people feel more secure with policies that pay benefits if they cannot work in their own fields, Housser added.



4. Do some financial planning. Some employer-sponsored disability plans begin paying benefits within seven days after the beneficiary must leave the workforce. Many families can bridge that financial gap with their savings. Self-purchased plans offer waiting periods from 30 days to a year. Policy buyers can choose a lower premium if they have other resources to support themselves during the waiting period.



5. Get help if needed. The planning process raises complex issues. A trusted insurance agent and a qualified financial planner can help determine needed coverage.



Both life and disability insurance policies offer many options. They can be customized to your family'ss unique needs, Housser said. Doing the research you need to choose the best option allows you to move forward in life with confidence.





Based in San Mateo, Calif., Bills.com is a free one-stop online portal where consumers can educate themselves about complex personal finance issues and comparison shop for products and services including credit cards, debt relief assistance, insurance, mortgages and other loans. The company blogs about consumer finance issues at http://www.bills.com/blog. Since 2002, Bills.com and its partner company, Freedom Financial Network, have served more than 15,000 customers nationwide while managing more than $350 million in consumer debt. The company'ss co-founders and CEOs, Andrew Housser and Brad Stroh, were named Northern California finalists in Ernst & Young'ss 2006 Entrepreneur of the Year Awards.

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