Are you prepared if you become disabled because of an illness or injury?  Or does it become a serious financial situation for you and your loved ones?  Many individuals do not have disability income insurance or emergency savings to last your family for at least three years.  That is the time that an average long-term disability claim can assist your family.  Disability income insurance, which adds to health insurance, can replace lost income that results from an injury or illness.  You may think that it is unlikely you will ever at any point in your life will be disabled.  Statistically speaking 1 in 4 of today’s employees will become disabled before they retire.  Read the following information to determine whether buying disability income insurance is right for you.

What is Disability Income Insurance?

Disability income insurance provides benefits that replace lost income when insured cannot work due to illness or injury.  Disability income insurance supplements your income even if injury or illness did not occur while at work.  To receive benefits you must meet the definition of being partially or totally disabled as described in the policy.  If your disability does not allow you to perform basic duties of your job you are considered totally disabled.  If you cannot perform one or more tasks essential to your job you will be considered partially disabled.  Disability policies replace 45% to 65% of your gross income due to illness or injury so be sure to purchase what best fits your needs.  Insurance companies will not replace all of your income because they want you to have a reason to want to return to work.

Most Common Causes of Disability?

  • Illnesses such as cancer, heart attack or diabetes are the major cause of long-term disabilities among adults.
  • Other significant causes are injuries, back pain and arthritis that can also prevent you from working.
  • Workers’ compensation will not cover your injuries or illnesses if they did not occur while you were working.
  • Obesity is becoming another factor facing disability as we tend to make poor lifestyle choices and behavior.

How Could I Replace Income If Unable to Work?

  • Most states require employer paid disability insurance such as short-term and long-term sick leave provided by employers.
  • If your injuries or illness is so severe you cannot work for at least 12 months you qualify for Social Security disability benefits.
  • Individual disability income insurance policies will replace a percentage of your income if you are not able to work.
  • Workers Compensation will replace a percentage of your income only if your injury or illness occurred at work.
  • If your disability occurred as a result of an auto accident you qualify for income replacement through the auto insurance.

What Questions Should I Keep in Mind to Ask my Agent?

  • In order for me to get a policy issued for disability how long would I have to wait?  If you become disabled, issuing disability coverage will vary on a number of factors.  For example, an insurance company can request previous medical records that can take four to six weeks.
  • What benefit amount would I qualify for?  Your benefit amount would be based on the percentage of your income.
  • If I become disabled, is there a time period that I would have to wait?  Once you become disabled the length of time you must wait before benefits begin can range from 30 to 180 days
  • For disability policies, are there any exclusions that will apply to a policy issued to me?  Yes, there will be exclusions that apply to your policy for situations in which a claim will not be paid.  Some of those exclusions may be disabilities arising as a result of a crime, self-inflicted injuries, war or military action.  Make sure that you go over all the exclusions in your policy.