Social Security Disability Case Study --Back Problems

Claimant was a 44 year old female with a high school education and roughly two years of training through a technical college.  She has previous working background cleaning offices and working with adult handicapped persons.  These past jobs required her to pick up/push adults, mop buckets, washing and drying clothes and cleaning commercial spaces.

Claimant's alleged onset date is 01.24.06 - Where she fell to the floor after a chair she was sitting in at work broke.  She had not worked since that time.

Claimant alleged the following severe impairments:  DDD, lower lumbar spine; chronic low back pain with lumboscral radiculopathy; history of lumbar spine surgery and spondylosis; facet arthritis; and spinal stenosis.  Claimant alleges the following non-severe impairments, which should be considered with the above:  obesity. Claimant has the following non-exertional limitations:  chronic pain in buttocks and legs, burning sensations in buttocks, leg and foot numbness, fatigue, sedation from pain medications, legs that “give way” when walking. 

After her fall at work, she endured back surgery, physical therapy and pain management therapy, including but limited to lumbar epidural steroid injections.  She was prescribed several pain medications, including the TENS Unit.  She had been unable to work due to the continued pain and numbness in her lower back, buttocks and leg; the medication and therapy.

Her doctor stated that claimant should be on light duty, with limited bending and stooping and lifting no more than 20 pounds.  With this assessment, claimant was unsure about the possibility of receiving her disability benefits.

I submitted a pretrial brief, showing not only that claimant had the pain and numbness in her left leg, but also in her right leg.  The ALJ asked the basic questions, complimented the brief, and stated that because we had submitted proof the symptoms in both legs, that he would make a finding for disability.  However he asked if she would amend her AOD to August of 2009.  This was the date her neurologist made note of the pain in her right leg, along with another disc protrusion.  As I had spoken with the client about the possibility of changing the AOD, and what this would mean, my client allowed me to make such a motion and the judge made a favorable finding for disability.

All about disability income insurance!

What is disability income insurance?
Disability income insurance provides you with replacement income if you are unable to work due to an illness or injury. Disability income insurance can help cover your medical bills, your house payment and other monthly expenses.

What's the benefit to having disability income insurance?
One of your most valuable possessions is your ability to earn a living. Take away your income and it’s amazing how quickly you could incur large debt -- just trying to cover your regular monthly expenses. 

Plus, as an individual disability income insurance product, it is "portable." That means you own the policy and it stays with you even if you change jobs.

What are the different types of disability income insurance?
Disability income insurance policies typically come with one or more of the following features:

• Noncancellable: Guarantees that as long as you pay the premiums, your disability insurance policy can’t be cancelled and typically locks in the premium rate for a set number of years.
• Guaranteed renewable: For short-term needs, this policy guarantees that you can renew the policy with the same benefits as long as you continue to pay the premium. There is the possibility that your premium will increase.
• Yearly-renewable term: For short-term needs, this type of policy has a scheduled annual premium increase.
• Participating policies: Provides the company may declare a dividend depending on the company's claims, experience that year, earnings on the company's investment and company's operating expenses. Dividends are not guaranteed.

Who needs it?
Whether you're single, married, have children, or own a business, a disability that keeps you out of work can be costly. To continue your standard of living in the case of a disability, it's important to have this coverage.

You might like to know ...
Insuring against disability has not been a high priority for most workers because many assume they're already covered through Social Security, Workers Compensation or employer plans.

You might be surprised to find out that only 39 percent of the 2.1 million workers who applied for Social Security disability benefits in 2005 were approved. And, 90 percent of disabilities are not work related, according to www.life-line.org. 

Your questions answered ...

Q: I have disability coverage through my employer ... is that enough?
A: If your employer offers disability coverage, take the time to find out if it's sufficient to meet your income replacement needs. If it's not, you can purchase coverage on your own. One of the benefits of individual coverage is that it can follow you even when you change jobs.

Q: How much disability income insurance do I need?
A: Find out how much disability income insurance you may need by using this simple calculator  (from Life and Health Insurance Foundation for Education), or by discussing your situation with an Ohio National representative.

Talk to your Ohio National representative to determine if one of Ohio National's disability income insurance products may be right for you.

Divorce Doesn't Have to Shatter You.

Many people who divorce think that the process must be extremely contentious or that if attorneys get involved it will become that way.  This is not the case.  If a person is seeking representation of an attorney for a divorce, the attorney may be able to assist them with reaching a settlement agreement, making things less contentious.

In recent years, many attorneys have moved more toward collaborative law.  Collaborative law seeks a more peaceful way of coming to otherwise litigious matters.  It can be used not only in divorce cases, but also civil cases.  In family law matters, collaborative lawyers will utilize other experts to care for the "whole" person/family.  This may include therapists, financial advisors, CPA's, etc. For more information see the Collaborative Law Guide for Divorce.

Although not a collaborative lawyer, I am in full agreement with idea of parties seeking more amicable ways to a resolution for their marital discord. I use a South Carolina Certified Family Court Mediator to assist in achieving this aim. Mediation can help you minimize the financial and emotional costs of divorce -- despite the hurt, anger, and lack of trust that usually accompanies the breakdown of a marriage. This also helps if there are children born of the marriage. The process of divorce can be equally emotional on the child as well as the adult.

If you are going through a divorce, or thinking of it as a option, consider using a softer approach to the usual and contact Wendy M. Bowen, Attorney at Law for assistance.  We are here to help you pick up the pieces and put them back together again.  Don't let divorce shatter you.

Fixed Annuities

What is a fixed annuity?
An annuity contract is a retirement tool in which the insurer agrees to make periodic payments to you, beginning either immediately or at some future date while offering a guaranteed minimum interest rate on your purchase payment(s) for a certain period of time.

What are the benefits of purchasing a fixed annuity?
A fixed annuity can be an important financial tool for your retirement plans. Here's why:

1. Competitive interest rate guarantees – Fixed annuities generally have competitive interest rates compared to other financial products for long-term savings.
2. Tax-deferred growth – For individual purchasers, income taxes on the earnings in a fixed annuity are not payable until the money is withdrawn from the contract.
3. Guaranteed lifetime income – Annuities offer lifetime income guarantees upon annuitization. These assurances are not found in other financial products.
4. Favorable withdrawal provisions – Many annuities allow up to 10 percent of the value of the contract to be withdrawn without surrender charges. Tax penalties may apply depending upon the age of the contract holder. (Generally, a 10 percent tax federal penalty applies to withdrawals prior to age 59½.)
5. No up-front sales charges – The contract value upon which interest is credited, is not reduced by sales charges. The contract value is reduced by surrender charges on early withdrawals.
6. Avoidance of probate – In the event of the annuitant's death, proceeds can pass directly to a named beneficiary without incurring probate expenses or possible delays.
7. Optional riders – Optional riders may be available to personalize your annuity.

Types of fixed annuities

• Immediate annuity – An immediate annuity is purchased with a one-time payment and provides an immediate stream of income for a specified period of time.
• Deferred annuity – With a deferred annuity, payments are made over time for a long term goal, such as retirement. Over the years, your money has the potential to accumulate tax deferred. Withdrawals providing an income stream begin in later years.

Who needs an annuity?
A fixed annuity might be right for you if you are looking for a way to protect your principal and receive a guaranteed rate of return.

You might like to know …
There are two phases to a fixed annuity: accumulation (pay in) and annuitization (pay out).

• Accumulation - Pay in – During the accumulation phase of your annuity, you accumulate interest on the contract based on your purchase payment amount and the rate guarantee period you selected.
• Annuitization - Pay out – Payments may be either level or increasing periodic payments, and may be set up for either a set amount of years or for the life of one or two people. When it's time to begin receiving income, you make the choices depending on what your needs are at the time.

Your questions answered …

Q:  What if the market or interest rates decline?
A. Because fixed annuities offer a one-year, three-year or six-year guarantee period on the interest rate, you'll receive the guaranteed rate even if the market goes down or interest rates decline. The contract also provides a guaranteed minimum interest rate, below which your rate will never be.

Q: What if I die in a year or so. What happens to my money?
A: There are numerous scenarios that will make this answer unique to your situation. But, if you have not annuitized your contract, your beneficiary is guaranteed to receive at least the greater of your total purchase payments (adjusted pro-rata for withdrawals) or the contract value on date of death.

Q: What is annuitization?
A: Annuitization is when you elect to start receiving annuity payments. With a  fixed annuity, we guarantee that we will make annuity payments for your lifetime in accordance with the contract's stipulations, no matter how long you live or for a set amount of years. 

At the time of annuitization, you can determine whether you want a fixed-dollar amount and/or a variable-dollar amount, and how frequently and for how long you'll receive your payments.

Q: When do I pay taxes on my fixed annuity?
A: Fixed annuities are a tax-deferred investment vehicle meaning all interest accumulates tax deferred. You pay taxes when you start taking withdrawals.

Q: How can I make sure that I do not outlive my money?
A: A  fixed annuity may help protect you from outliving your money. By annuitizing and choosing the lifetime option, you can establish income for life, no matter how long you live.

Courtesy of Ohio National

Universal Life Insurance

A universal life (UL) insurance policy is more flexible than other permanent policies, so you can customize it to fit your lifestyle.

Universal life insurance:

• May provide a guaranteed death benefit, ensuring the financial security of your family.
• Gives you the flexibility of choosing how much, and when, to make premium payments. (Depends upon the cash value in your policy.)
• Accumulates tax deferred and is accessible on a tax-preferred basis and is generally income tax free (under current tax law) to your beneficiary upon your death.
• Lets you access the cash value for any purpose you may choose including a down payment on a home, a tuition payment for your child or to provide cash flow during your retirement.*
• Allows you to change your death benefit which means you can increase or decrease your death benefit amount (increases are subject to underwriting) as your needs change.
• Guarantees the interest rate that you earn on your cash value to be at least 3 percent annually, although our credited rate, which is not guaranteed, has been much higher.

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 Courtesy of Ohio National