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Straight
Track #61 How To Support Your Family
On $1,000 A Month
By
John P. Grob & Gary F. Babiarz
Hoey & Farina
Investigators
1-888-425-1212
In the railroad
industry the typical worker earns somewhere between $40,000 - $100,000 a year.
Yet under the law, when a railroad worker is off due to sickness or injury, he
is entitled to $1,000 a month from the Railroad Retirement Board
("RRB"). Even if you are one of fortunate employees to work on
property where a union contract provides disability insurance, the combination
of that insurance along with the RRB benefits often falls short of your regular
take home pay. On average, there is
a $2,000 to $3,000 a month difference in income.
Unfortunately most
railroaders work under the misconception that as long as they are hurt on the
job the railroad will continue to pay them until they are well enough to return
to work. Because of that, the
thought to purchase a supplemental disability policy doesn't ever enter their
mind that is until it's too late. If
you happen to become the "1 in 10" railroader who gets seriously
injured each year and don't already have supplemental disability insurance in
place, it will be too late for you as well.
The only way to provide 100% protection for yourself and your family
against the 10% chance that you are going to get injured on the job is to get
supplemental disability insurance, now.
There should never
be a question in your mind whether or not to get supplemental disability
insurance. The only questions you
should have are how much and what type? There
are many types of policies all with varying requirements that you need to make
yourself aware of before purchasing. Some
policies cover your mortgage, car payments, or unsecured loans. These types are
usually obtained when you originate the loan and have their premiums built into
your monthly loan payment. Other
policies require a monthly premium which in turn guarantees you monthly payments
in the event you are injured. Still
other policies cover you only if you are sick or only if you're injured on the
job. There are policies that might
require that they be paid back if you receive a settlement, while others are
exempt. And, this is very
important, there are policies that begin paying benefits the day you are
injured, while others have a grace period.
So now you
understand that there are quite a few differences in policies.
What else should you consider? Consider
this - one of the biggest obstacles that an injured railroader must overcome
besides the pain and suffering caused by an injury is meeting financial
obligations while off work. In
order to determine just what type of coverage you should purchase, you need to
know exactly how much money you and your family need to survive on a month to
month basis. First, add up all your
monthly bills. Next, add the $1,000.00 from RRB to the amount of any disability
payments you are already entitled too, and subtract that amount from the total
of your monthly bills. The total
dollar difference is the amount of coverage that you need.
Having determined
the types of things you need in a policy and how much money you would require
each month brings you to the next step, purchasing a policy.
A good place to get started is to ask your union representative for
advice on purchasing supplemental disability policies.
Many railroad unions have plans available that are tailored to railroad
workers and their specific needs. If
you decide to purchase from outside a railroad union source, we highly recommend
that you have the representative of the company you're purchasing a policy from,
visit you at your home. The reason
for this is simple and just mentioned, you want a policy specifically tailored
for you and your family. This can
best be done in your home environment.
If you are still
not convinced you need supplemental disability insurance, consider this, the
railroad claims agents know fully well the economic hardships that an on the job
injury can put on a railroader and his family.
They can manipulate your economic strings by advancing you money
contingent on giving statements, treating with certain doctors or performing
light duty. All of these are ways
they can help the railroad by dramatically reducing your claim.
You may be asking
yourself how much will supplemental insurance cost.
The average supplemental disability policy costs between $40 and $90 a
month. If you've gone out to a
dinner and show recently, you know that's just about how much a night out cost
these days. Think ahead, what would
you pay to not have to worry about how to put food on the table or how to pay
the bills. If you take the
necessary precaution now and secure a supplemental disability insurance policy
you will only have to worry about one thing if you get injured at work, the most
important thing, getting well.
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