Make your list and check it twice

If you haven't reviewed your disability policy in the last two or three years, you should put it on your list of things to do in 2011. I find that employers often put a long term and/or short term disability policy in place and then forget about it until someone files a claim.

I tell my clients that it's a good idea to review the policy every couple of years to make sure the benefits still "fit" based on their current business environment. I like to review the policy with them to be sure the salary amounts they want to cover are in fact adequately covered based upon the policy terms. It is important to take into consideration any salary adjustments the employees may have had. I also want to be sure that any changes that have occurred in the business since the policy was written are correctly reflected. Things such as adding a significant number of employees, buying or selling a business or subsidiary, etc., can affect the benefits needed and can also affect the premium rates.

I have found many situations that may make it advantageous to have a new policy issued, even if we aren't changing carriers. Disability carriers review their products regularly for competitive reasons and to meet market demand. Many times a carrier will upgrade their product for new sales but unless a client or his advisor is periodically reviewing the contract, the upgrades don't get added to an older contract. I have been able to upgrade my client's benefits and reduce costs many times just by doing a review and talking to the carrier.

So, as you move into 2011, be sure to add your disability policies to your checklist and be sure to check them twice - with the help of your advisor!