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Disability Insurance

What Is Disability Insurance?
Disability insurance is a type of insurance that provides you with a monthly
benefit if you become disabled. Monthly payments are paid for the duration of
your disability, or for the specified length of the policy, whichever is sooner.
Disability insurance is a contract between an insurance company and its
policyholders. The insurance company agrees to give you a monthly benefit
amount in exchange for your monthly payments if you experience a condition that
prevents you from working. It is intended to replace a portion of the income you
lose as a result of your inability to work. Disability insurance ensures that you can
fulfill your financial obligations when you’re unable to work, such as paying bills,
covering household expenses, and providing for your family.

How Does Disability Insurance Work?
How disability insurance works will depend on what type of disability
insurance you get. There is individual, group, short-term, long-term, and
supplemental disability insurance. In general, however, disability insurance works
by filing a claim with details about your disability diagnosis and proof that you are
unable to work and then you pay premiums for the plan you choose.
You’ll start receiving benefit payments after the waiting period is over. When you
return to work, your disability insurance payments usually terminate, but you may
be able to extend your coverage with a rider. You can easily cancel your disability
insurance if you no longer need it.
Disability Insurance Benefits:
Disability insurance can help you prepare for the unforeseeable and financially
protect you and your family. The most common disability insurance
benefits include:
• Providing monthly income in the case of total disability and partial disability
• Customizable policies for your income needs
• Protecting your level of training
• Offerings student loan repayment features

How Much Does Disability Insurance Cost?
Premiums for disability insurance vary based on age, occupation and the features
of the policy. Once set, premiums remain level for the duration of the contract.
The cost of disability insurance (also known as premiums) for both short-term and
long-term coverage can range from 1% to 3% of your annual income. During total
disability, your policy premiums are waived. During partial disability, premiums
may be reduced.

Who Is Disability Insurance For?
Disability insurance is for those who want income protection for themselves and
their family. Individuals with a high level of specified training also
purchase disability insurance to protect their occupation and guarantee an income
during their working career.
For example: A surgeon who develops a tremor and can no longer perform
surgeries, would receive a monthly payout from their disability policy because
they can no longer perform duties of their specifically trained occupation, even
though they may be able to work another occupation and draw an income.
How To Get Disability Insurance
1. Choose the type of policy you want to buy.
2. Determine how much protection you require.
3. Shop around and compare insurance rates from a variety of companies.
4. Fill out the paperwork for the application.
5. Complete an Interview about your lifestyle and medical history.
6. Take a medical examination.
7. Wait for a response to your application.
8. Accept your insurance coverage offer.

Top Five Reasons for Income Protection

#5 Reason: Maintain Your Lifestyle
Only 18.7 percent of people with disability worked in 2017, compared to 65.7 percent
of people without disability.1
At the same time, people with disabilities often incur extra
expenses in order to make living arrangements and transportation accessible. Savings
accounts don’t last long. And, bills keep piling up. Your income decreases and your expenses
increase when you suffer a debilitating illness or injury. When life throws you a curveball,
the last thing you want to think about is downsizing or cutting back. However, with a solid
income protection policy in place, you will be able to keep your current lifestyle.

#4 Reason: Ensure Your Future
The first contribution you stop making when you become disabled is to your 401K. If that
happens, forget about a comfortable retirement. Without that retirement money, you and
your loved ones will continue to struggle for years to make ends meet. You don’t need to
sacrifice your retirement dreams. With disability income insurance, paycheck protection
is affordable and achievable.

#3 Reason: Secure Your Children’s Success
If you can’t meet or make your monthly expenses and pay your medical bills, how are you
going to save for your children’s future? In the wake of disability, saving for college often
falls to the wayside. If there is no safety net in place, your only concern will be financial
survival every day, not saving for the future. You can keep your children on the debt-free
college-track with a solid disability insurance policy.

#2 Reason: Safeguard Your Spouse
If you are the breadwinner of your family, you need to protect your paycheck. If you
suffer a disability and can no longer work, your partner will likely need to work longer
and harder to replace your income and cover medical bills. However, if you have disability
income insurance, you can keep the bread on the table and prevent your partner from
having to work multiple jobs.

#1 Reason: Preserve Your Confidence
Getting injured is stressful. Not working is stressful. Mounting piles of bills are stressful.
When you are injured, extreme stress can lead to slower recovery times and cause
depression. If you are already suffering physical distress, you don’t need the mental
anguish the lack of income causes. You can avoid that pain and instill a sense of
confidence with a solid income protection policy. With stress out of the picture,
you’ll be back to work in no time!