Disability Income Insurance
Disability Income Insurance offers financial benefits to the one insured or policyholder in case sickness or accident leading to a disability that inhibits regular employment working. Disability income insurance helps when one is unable to work due to illness or disability. The income will be able to pay for the expenses even though the individual is not working. Most of the disability lead to additional costs, make saving for the future hard and can stop income generation (Low, Hamish & Luigi 2986-2987).
In this point, the policyholder will be able to maintain his or her living standards and progress with payment of regular expenses as usual. Similarly, the sources disability income includes federal government ent, employer, state government and individual disability programs. The federal government provides income through SSDI (Social Security Disability Insurance), and the payment is made to Social Security Administration (SSA). There are eligibility requirements that an individual must meet before receiving the benefits (Koning & Maarten 151-152). Moreover, it is the requirement that all the employers pay for Workers’ compensation especially those who are injured or got accident while working. Some of the states are involved in the provision of disability coverage for a short period, usually six months. Payment deduction is the mechanism used by employees to pay. Special disability programs provide insurances coverage to veterans, government workers, railroad employees and miners who develop complications.
Horizontal analysis is used in the evaluation of trend situations. The technique shows variations of items in the financial statements over a specified period. It is mostly used by analysts in the comparison of line items or ratios in the financial statements of a company of a particular period. The vertical analysis shows sizes relativity of various accounts found in financial statements. The company’s total assets usually present as 100 percent.
The balance sheet also accounts for the liabilities and total assets in the form of percentage compared to the total assets (Leuz &Peter 525-528). Common size financial statement is used in displaying the items in the financial statement as percentages of base figure. The financial report gives analysts easy time in the analysis of companies or the period. Comparison of financial statements helps in understanding the progress of the company. The company will realize the assets and the liabilities which it has and areas which need improvement.
Koning, Pierre, and Maarten Lindeboom. “The rise and fall of disability insurance enrollment in the Netherlands.” Journal of economic perspectives 29.2 (2015): 151-72.
Leuz, Christian, and Peter D. Wysocki. “The economics of disclosure and financial reporting regulation: Evidence and suggestions for future research.” Journal of Accounting Research 54.2 (2016): 525-622.
Low, Hamish, and Luigi Pistaferri. “Disability insurance and the dynamics of the incentive insurance trade-off.” American Economic Review 105.10 (2015): 2986-3029.