Disability Income Insurance

DISABILITY INCOME INSURANCE
What is Disability Income Insurance?
This insurance provides you protection if you lose the ability to earn a living – an economic death.

We offer low cost Disability Income Insurance Plans

Why Do I Need Disability Income Insurance?

Your most important asset is your ability to earn a living. Disability Insurance provides protection from economic death- the loss of your ability to earn a living. What about all of your plans for the future- buying a home, building a nest egg for retirement, putting your children through college? No doubt all of these plans are based on assumptions – including the assumption that you will be earning a paycheck. Have you considered plans for the scenario that your paychecks will stop – that you may become disabled?

This is where Disability Insurance comes into play- you can provide an income to you and your loved ones if a disability strikes you and you are unable to work. Think about this – a 25-year-old person earning about $50,000 could lose $3.8 million dollars in future earnings.

Here are the basic facts- if you have a job you will most likely need Disability Insurance. How long could you and your loved ones exist without a regular paycheck?

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Where to get Disability Income Insurance:

Your available budget, desired benefits, and health status will determine where you get Disability Insurance. Checkout the information below for some basic information

Group Plans through your Employer: Short and/or Long-Term Disability Insurance may be available though your employer. Typically there is no underwriting, which means that you automatically qualify for coverage. Contact your Benefits Department in Human Resources to find out about Group Disability Insurance. It is important to consider that Group Disability Insurance through your employer is generally not transportable (meaning you cannot take the insurance with you if you leave your job.

Plans through Professional Organizations: Group Disability insurance plans are also available through many professional organizations. Some underwriting is involved, and the premiums are usually based on your age and your income. If you change professions the disability income insurance may not follow you – please check your policy, or verify this with the insurance company that wrote the policy.

An Individual Policy – Buy It On Your Own: This would be an Individual Disability Insurance Policy that you purchase on your own. Your coverage would remain intact regardless of your work place or situation.

Sources of Disability Income Insurance:

There are a number of sources for Disability Benefits should you experience a disabling injury or illness. There are a number of limitations on the Disability Benefits available from these sources, and the benefits may not be sufficient for your income replacement needs.

Workers’ Compensation: Coverage is available when you are injured on the job. This frequently provides a portion of your income (typically two-thirds). Only job-related disabilities are covered.

State Disability Insurance: A few states provide a short-term Disability Coverage that can be purchased through payroll deductions. California, Hawaii, New Jersey, New York, and Rhode Island are currently offering the short-term disability coverage.

Social Security: The government offers Disability Insurance, but qualifying for benefits can be a lengthily process. The benefits are based on your salary and work history, and the payment levels are fairly modest.

Employer-Sponsored Coverage: This is the main source of Disability Protection in the United States, especially through larger employers. Two forms of Disability Insurance are typically made available: Short-Term Disability (STD), and Long-Term Disability (LTD).

Short-Term Disability Insurance usually provides three to six months of significant salary replacement.

Long-Term Disability Insurance provides 40% to 60% salary replacement of your base salary (pretax) for longer periods. Two or Five year periods are the most common.

Individual Disability Insurance: Individual Disability Policies provide the most flexible and reliable source of coverage. These policies are portable (you can take them with you if you change jobs), and you do not have to worry about losing coverage. Generally, you can expect about 40% to 60% of you Gross Salary (pre-disability). Benefits would not be taxed if the premiums are paid with after-tax dollars.

We work with top insurance companies to find insurance with the best fit to your individual needs at the lowest price.