employer paid long term disability insurance - Spencer Insurance Agency, Inc

What is the #1 threat to your retirement savings?


Even if you are in your thirties or forties you need to pay attention to this article.  Your future retirement assets are at risk too.

You insure your homes yet there is only a 1 in 300 chance of a house fire. You insure your cars and yet there is only a 1 in 30 chance that you will have an auto accident. There is a 4 in 10 chance you will need long term care yet very few people insure their retirement assets to protect those assets from long term care expenses. Yes, long term care expenses are the #1 treat to your retirement assets.

According to “Genworth’s cost of care survey”  for 2017, here are the average annual cost in Pennsylvania:

  • Homemaker services (care in the home) $50,336
  • Adult Day Care $16,120
  • Assisted Living Facility $41,400
  • Semi Private Nursing home room $111,325

What is long term care?  Long term care is help needed to assist with the activities of daily life such as bathing, dressing, eating, using a toilet, continence or transferring from a bed to a chair. You may need this care in the home or in a facility.  How long would your retirement assets last if one or both of you needed long term care?

Here are some solutions:

  • Pay out of pocket. Even if you can afford to do this I can show you a better way
  • Medicare – Medicare only covers skilled care after being in the hospital for 3 days. So if you just need custodial care or are not getting better Medicare will not help you. Even if you do receive Medicare benefits for long term care they only last for 100 days. (20 of those days at $0 copay and 80 of those days with a copay of $167.50.)
  • Medicaid – Many with minimal assets will need to use Medicaid.
  • Private Insurance. Long term care insurance has changed dramatically.

Up to a few years ago if you purchased long term care insurance you received a policy similar to a disability policy and you had a certain monthly benefit for a certain number of years. The problem with these policies were that the price was not fixed and most policies saw many increases in premiums.  In addition, if you never needed to use the policy and passed away your heirs received nothing. Many insurance companies have gotten out of this market.

Did you know that today you can use life insurance benefits to pay for your long term care?  You purchase a permanent life insurance contract that includes a long term care insurance rider. If you qualify for long term care benefits (same qualification as the old policies) you can start taking up to 4% of your life insurance benefit monthly to help you pay for long term care expenses. That means if you have a $250,000 life insurance policy you may be able to take up to $10,000 a month to pay for your long term care. When you use all of the $250,000 death benefit then the policy ends.  Best of all if you never need long term care and pass away then your heirs would receive the $250,000 death benefit.

So why should you care if you are in your thirties or forties?  Since this is life insurance the younger and healthier you are the lower the cost. You can have plans that will be paid up by the time you retire.

As always Spencer Insurance Agency wants you to understand your options. Check out our website for more information about long term care insurance. Contact us today to set up a time to talk about long term care expenses and long term care insurance. Decide for yourself how much of your retirement assets will be protected against long term care expenses.  Spread the word to your friends and family because few people know about this option.

Has your Open Enrollment period begun?

If you work for a larger employer you may receive some group life and long term disability benefits.  You probably ask yourself “Should I purchase the supplemental life insurance that is offered? Spencer Insurance Agency wants to help you make this important decision.  There are times it makes sense to purchase this coverage and times when you are better off getting it on your own.  Check out the pros and cons on our website.  I think you will find this very helpful.

Do you have group Long Term Disability Insurance?  I strongly suggest you elect this coverage even if you need to pay the premiums. If you are able to buy up to 70 % do it!  The chances that you will be disabled before age 65 is far greater than the chance that you will die prior to age 65. But be careful of the trap!  Many of these group long term disability plans have a monthly cap.  Check out my article “Is my employer paid Long Term Disability Plan enough? When is 60% only 30%? “

Don’t be caught short!  Contact us today to discuss your options with “Open Enrollment.” Remember your open enrollment only last a few weeks.


Spencer Insurance Agency was voted the “Best Insurance Agency” again for the third year in a row.

Open Enrollment – An important time of the year.




Once a year most companies that provide group benefits have a period called “Open Enrollment. “ This is a brief time when you can change your benefit options with limited medical underwriting.

For example if you previously elected not to have Group Long Term Disability Insurance you now have another chance to choose that benefit with limited medical questions.  You may also be able to purchase some additional supplemental life insurance with few medical questions.

Spencer Insurance wants to help you during this “Open Enrollment” period. We specialize in life, disability and long term care insurance.  Contact us when you get your “Open Enrollment Package.”

Many people tell us they are paying a small amount for their supplemental life insurance.  Your company may provide free life insurance up to one times your salary and the employee can purchase another three to six times that salary.  The premium may seem inexpensive however why should you consider getting that coverage outside your employment?  Here are three reasons you should consider:

  1. If you lose your job or decide to switch jobs you may lose that coverage. Many times the coverage is not transferable. This could be a problem if you now have health problems you did not have when you first decided on the supplemental life insurance with your employer. If you had gotten a life insurance policy on your own with a premium guarantee of 30 years then you could switch jobs knowing the lack of life insurance at the new employer is not a deal breaker.
  2. An employer can decide to eliminate the plan, change the plan or change carriers. In addition the rates are typically set in five year bands (30 to 34, 34 to 39, 40 to 45 etc.).  This means as you get older that premium will increase.  An alternative is to purchase a life insurance policy with a 30 year rate guarantee outside of your employer.
  3. The group rates may be the same for all employees. This means an unhealthy employee who smokes may get the same rate as you.  If you purchased a life insurance policy outside your employer then you may qualify for the best non-smoker rates.

In addition you need to be careful with your Group Long Term Disability Insurance.  The employer may say its group policy will pay you 60% of your income should you be disabled.  However your plan may only cover your salary and not any bonuses. Most plans have a cap so the plan may only pay 60% of your income up to a maximum income of $5,000 per month.  If you earn more than $60,000 per year you may not be getting 60%.  Check out my article – When is 60% only 30%. You may need some supplemental long term disability insurance.

Let us review your “Open Enrollment Package” today to be certain you are getting the best long term rates.  Don’t hesitate to contact us as the “Open Enrollment” window only last a couple weeks.

Do you have Paycheck insurance?

disability awareness monthe

October is Disability Awareness Month

Did you know two-thirds of American families live from paycheck to paycheck.  3 of 10 workers entering the work force today will become disabled before retiring.  Only 39% of the 2.1 million workers who applied for SSDI benefits in 2005 were approved.

Despite these facts most families do not protect their paycheck if they become disabled.  How long could your family survive financially if you lost your paycheck due to a disability.

Check out our report SPENCER TIPS ON “How to Protect Your Family When You Become Disabled and What You need to Know About Disability Insurance.”

You need to purchase disability insurance before it is too late.  You need to have the policy before a disability attacks you.  Call us today at 215-885-2200 for a disability insurance quote. “Your Protection and Piece of Mind is our only business.”



When is 60% only 30%?

Beware of your Employer Group Long Term Disability!

I always enjoyed math, but this is scary.

Many employees rely on their employer’s Long Term Disability Plan to provide income for their family if they become disabled.  Thankfully many companies offer this valuable benefit.

However, if you make over $75,000 a year, be sure to read the fine print in your employee benefits manual or website.

Why,  many plans cap the monthly benefit you can receive from your group Long Term Disability Plan at $5000 per month.  For most employees that may be sufficient, but if you make over $75,000 a year you may be getting less than 50%.  Let me explain. . .

Let’s suppose you make $150,000 a year.  You think your employer’s group long term disability plan will provide you 60% of you salary or $7500 per month.  Think Again!
Remember, your plan caps the benefit at $5000 per month, so you do not receive $7500 per month but just $5,000 per month.  That’s bad enough, but it gets worse.  Since your employer is paying for the coverage, the benefits you receive are taxable. So assume you are in a tax bracket above 25% then the IRS takes another $1250 per month in taxes leaving you with take home pay of just $3750 per month or 30% of your salary.

Here is the good news!  You found this out BEFORE you became disabled and can take action to fix this shortage.  Spencer Insurance can provide you a supplemental disability policy so you are not caught short.  Call us today for a disability review at 215-885-2200 or Check Here to reach us online.  For our Free Report “HOW TO
Click this Link: http://www.spencerinsurance.com/docs/special_report_disabillity_insurance.pdf

Act now before you become disabled.


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