Disability InsuranceDisability Insurance

Accidents and illness are facts of life. They can happen to anyone at any time. In a split second, accidents and illness can change your life forever. Your ability to earn an income is one of your most valuable assets.

If you became disabled today, could you afford to:

  • Pay your mortgage or your rent?
  • Buy Food?
  • Pay your utilities?
  • Make car or loan payments?

Where would the money come from if you were disabled?

  • Deplete your retirement savings
  • Borrow from family or friends
  • Would your spouse pay all your monthly expenses
  • Sell your home or car?

Disability Insurance can provide you with Tax-free dollars each month if an accident or sickness stops you from working. You may ask yourself… “I have group coverage at work why would I need this?” Do you really know what your Group Disability insurance covers if you became sick or injured?

How much does it pay?

  • May not cover all sources of income such as bonuses and commission
  • May have a maximum that caps below your income level
  • May be reduced by other sources of income
  • Benefits are taxable if premiums paid by employer
  • Would benefits cover a permanent disability and keep up with inflation?

What is the cost?

  • May increase over time, depending on age and health experience of group. What are the guarantees?
    • Group coverage would not be guaranteed
    • Coverage may be cancelled
    • Premiums would not be guaranteed
  • Who controls the disability insurance plan?
    • You do not control the plan; it is negotiated between the employer and the insurance company
    • Coverage in NOT portable to new employer
  • How do you qualify for benefits?
    • Uses restrictive definition of disability “any occupation”
    • May have limitations or exclusions
    • Usually has pre-existing conditions limitation
    • Usually does not cover part-time work