Disability Income Coverage

Have you ever wondered what your most valuable asset really is?

It isn’t your home, your vehicles or all your other possessions combined. It’s your ability to earn a living! Without it, you wouldn’t have those possessions in the first place. And just as you would insure your car, your home and other valuable possessions; you need to insure yourself in case you are no longer able to work. Frankly, anyone who works, whether they are single, married; with or without children should consider buying disability income insurance.

Disability income insurance provides a source of replacement income if you are unable to work due to an illness or accident. If becoming disabled seems unlikely, the odds may surprise you. Nearly 1 in 5 Americans will become disabled for 1 year or more before their age of 65. Will you be that person and if so, are you prepared financially? Think about it and answer it honestly!

If that accident or illness keeps you from working for any period of time; it can be very costly. People who become disabled not only need to continue providing for loved ones, but for themselves as well. A disabling injury or illness could lead to more medical bills, modifications to your home or vehicle and other unforeseen needs that can be quite expensive. Ironically, your expenses are increasing at the worse possible time while your income is decreasing or non-existent at that same time.

Do I really need disability income? Only you know that answer, so try this exercise.

• Add up all the benefits you would receive if disabled, including group coverage, government benefits, along with any other monthly income you can count on.
   
• Add up all your monthly expenses. They include your mortgage, car payments, insurance, utilities, food, clothing, loan payments, credit card debt, medical bills, health insurance and all those other normal maintenance costs.

If the total income you would receive is close or exceeds your expenses, you should be able to pay your day-to-day expenses while disabled. However, if the total income would not be adequate to support you and your family, you may want to seriously consider buying an individual disability income insurance policy to make up the difference.

Some of the things to consider would be the definition of disability itself; whether it includes both accidents & illness and what the difference is between partial VS total disability. Eligibility requirements such as income & occupation, benefit amounts, benefit periods, elimination periods, whether the benefit is taxable, whether the policy is cancelable or non-renewable, whether premiums are waived and if cost of living increases are available are only a few of many things to consider.

Because there are so many factors to consider and disability income is a truly personal situation, the best approach would be to contact our office. We can conduct a more thorough disability insurance needs analysis and explain various options to consider.

Remember, the most expensive policy just might be the one you don’t have. If you need this coverage, your current good health and eligible occupation is the key to getting a policy approved. Don’t wait until something changes to prevent you from qualifying for your individual disability income policy.