By Larry Schneider
dis·abil·i·ty noun \ˌdis-ə-ˈbi-lə-tē\ : a condition (such as an illness or an injury) that damages or limits a person’s physical or mental abilities : the condition of being unable to do things in the normal way : the condition of being disabled : a program that provides financial support to a disabled person
The Risk is Real
A Disabling Injury or Illness can occur anytime to ANYONE!
In 2007, about 51,000 people suffered a disabling injury every day. And other statistics show that Disability protection may be more important now than ever!
Between the ages of 22 and 62, the risk of suffering a disability compared to the chance of dying unexpectedly, was 7.5 to 1, and at no age, ever less than 2 to 1! And the worst part is, that it will happen without you being ready for it!
Will You Have an Income, If You Become UNEXPECTEDLY Disabled and Are Unable to Work?
Most people don’t think about this question very often. But they should! Everything you work for depends on you and your ability to earn an income, your house, your car, your bills, your lifestyle! What will happen if you suffer a disabling injury or illness?
Can you really afford a long vacation without an income?
Disability (Income Replacement) Insurance is the answer to that question. Disability Income Insurance can provide a regular monthly income, tax free, paid directly to you, to help you and your family meet financial responsibilities after the elimination period of a covered disability. Note: Benefits will be Tax Free if premium is paid by insured.
Disability Income Insurance will help prepare you for such an event. It will supply the money you need in a time of a crisis. Disability Income Insurance plans offer various options, so that you can set up your own plan to meet your personal needs, can allow adjustments to help keep your benefits up to pace with inflation, offer you partial or total loss of earnings replacement benefits. And there’s much more.
Don’t Wait Until It’s Too Late
Income can only be provided if you are insured before a disabling injury or illness strikes. Chances are, it could happen tomorrow. Don’t wait any longer. Even if you are covered at work (employer paid) you can be under-insured as a result of only having approximately 60% of your salary (normally exclusive of bonuses) covered and then the benefits are then taxable, bringing take-home pay to 40% or less, after other offsets!!
You’ve got a lot at stake. If you lose your income, you’ll lose a lot more than just that, Because if you’re unable to earn an income, your family’s life can change dramatically!
We represent all of the major carriers and have “no ax to grind”. We can even get the “uninsurable” insured either for yourself or someone else your might know who up until now, hasn’t been able to get coverage)
How To Select The Ideal Disability Income Insurance Policy
Selecting the best and ideal disability policy can be a formidable task, even for an experienced insurance agent or financial planner.
Over the last decade, at least twenty carriers have exited the marketplace. Some of those that have remained, have redesigned their policies to be more contract driven than claims driven by changing their definitions, terms, conditions, formulas, etc.
All of this makes it very confusing to the consumer, especially if they are “shopping the market”. Proposals may gloss over, emphasize or de-emphasize one part of the coverage, all of which doesn’t help when trying to make a comprehensive evaluation and comparison.
There are still a few good companies offering disability income insurance, each with a variation of the theme. Learn which policies protect the consumer more than the carrier by paying benefits under more circumstances with fewer restrictions. These are known as claim driven vs. contract driven policies.
CONCLUSION: The insured should have their policy reviewed by a specialist in view of the fact that the disability insurance industry has experienced some major changes. Recently issued policies, or even some older ones might contain provisions that will make it more difficult to have a claim paid, especially employer group Long Term Disability (LTD) plans which are NOT owned by the insured … AND, the benefits are always taxable.
- David Watkins, CLU
Practice Limited to Individual Disability Insurance
Capitola, CA 95010 831-479-4422