Hi. My name’s Allan Friesen. I’m an employee
benefit expert in Southern Alberta. This is one of a series of tips that
help you get the best value out of your employee benefit or group benefit
program. Know you might say “Hey
why is this guy calling himself an expert?” Well there’s three criteria that I use
to determine if somebody knows what they’re talking about. One is their training or education. Two is
their experience and Third is this a specialty for that
person or is this just something they dabble in? So in my case
I believe I meet those criteria. Check me out on LinkedIn, look at my
profile, I think you’ll agree. So here’s my tip today. I have a story to
tell you, the story of Mike. Mike is a tire man and he’s a good tire man,
and he gets paid well doing it. So one Sunday afternoon he’s out
riding motorcycle and crashed his motorcycle – unfortunately. So the bad news is he crashed his motorcycle.
Unfortunately he’s quite severely injured from that crash. Good news is he does have some
disability coverage. So as long term disability coverage replaces income while you are disabled – that’s good
news. Now because of the severity of his
injuries he’s not working for a long time. It is many years to have his disability. Now his long-term disability program
doesn’t adjust for inflation. He start at twenty-eight hundred dollars ($2800)
a month and he received that twenty eight hundred dollars a month forever. Well in five years, in 10 years, in 15
years what has happened with that twenty eight hundred dollars? Obviously it’s been eroded through
inflation. Now there is a benefit you can add to long-term disability programs
called a cola – cost of living allowance. With the cost living allowance then his
long-term disability benefit, Mikes long-term disability benefit, would have increased with inflation. So
that would’ve offset the effects of inflation and provided a better benefit. Anyways, that’s an idea you can
consider that for an add-on to your group benefit program,
if you already have long term disability. If I can help you with any additional
information please do contact me. My contact information is on the screen or connect with me on LinkedIn. Also here is another bonus tip: your
health is your most important asset – so please take care of it. Keep well! Thanks.