Questions about Disability Insurance
Things you may not know
What Is Disability Insurance? Of all the many types of insurance available, one of the most important, and unfortunately the most overlooked, is disability insurance. An injury or sickness can happen to anyone at anytime, at your home or your office. Disability insurance is the type of insurance that helps replace your income when you can not work due to injury or sickness. This coverage will pay you a predetermined amount of money when you are disabled, to asset you with meeting your normal expenses such as mortgage, utilities, schooling and groceries.
How Does Disability Insurance Work? As the result of an injury or sickness, your disability insurance is designed to pay a portion of your lost income. The amount of coverage you can purchase is determined on an individual basis. Your current income and any existing coverage will determine how much coverage you will be eligible to purchase. Your protection can vary depending on your occupation, but it is critical that you purchase your coverage from a highly rated company (rated A or better) because this is a policy that will likely provide your family with needed income for months/years into the future.
What the statistics show:
- Disability causes nearly 50% of all mortgage foreclosures, only 2% are caused by death. (Health Affairs, the Policy Journal of the Health Sphere, Feb 2nd., 2005)
- Over 51 million Americans are classified as disabled, representing 18 percent of the population. (U.S. Census Bureau, Public Information Office, Nov. 2008)
- In the U.S., a disabling injury occurs every 1 second, a fatal injury occurs every 4 minutes. (National Safety Council, Injury Facts 2008 Ed.)
- As of June 30, 2009 the average amount of monthly income for a disabled person on Social Security Disability Income was $1,062. That is only $12,744 per year. (Social Security Administration, Actuarial Publications: Social Security Program Fact Sheet 2009)
Disability Insurance Options. The policies can be issued with income benefits for 2 years, 5 years and to age 67. Generally you will find that benefits are income tax free. The normal waiting periods can be structured as a 30 day, 60 day, 90 days, 180 day, or even longer. For our highly specialized occupations, the policies will protect your specific occupation (Own-Occ definition). Cost of living riders and catastrophic riders are often available to the insured.
Lets us help you protect your most valuable asset…..your ability to earn a living!
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