One of the most overlooked, under sold, and essential insurance protection is disability income. May is disability insurance awareness month so this is an ideal time to provide some general information.
Many of us are already protected by health and life insurance. The problem not solved is the illness, injury, or accident that prevents one from earning an income for an extended period of time. Your health insurance will pay your medical expense, but you and your family will have to deal with the reality of reduced or even no income.
Many larger corporations provide some form of disability income protection as an employee benefit. While this is a good starting point it is likely inadequate. Benefit limits, both amounts and percentages, as well as exclusion of certain forms of income such as bonus and commissions may severely reduce the amount available. Check with your plan documents or HR department for clarification. It is likely available online. Benefits from an employer paid plan are taxable. Workers comp only pays for on the accidents in limited amounts. Social Security may provide some limited benefit for permanent disability, but they routinely decline 2/3 of all initial applications. Nearly 90% of disabilities are non-work related. Illness, not injury, accounts for most of the causes of disabilities.
Some insurance agents avoid disability because of the complexity. Unlike life insurance it is not black and white. Some of the variables include the age, sex, health, occupation, and income of the insured. Policy benefits are limited by income and reduced by any existing disability plans, either individual or group already in force. There are numerous variations and riders available such as benefit amount, elimination period (deductible), benefit period, future purchase options, own occupation definition, return of premium option, residual (partial) disability, and a few more. Fortunately, the carriers provide calculators and software to custom design plans to fit your needs and budget. causes
A disability lasting 90 days or longer is more likely than death at all ages up to 65. How long could your family continue to live its lifestyle if the income stopped? Please feel free to contact us at john@sandpiperinsurance.com or by phone at 954-609-1940. We do not charge any fees for the consultation and analysis. If you prefer a zoom meeting can be scheduled and it is entirely possible that the entire process can be completed without any personal contact.
Please continue to observe the safety guidelines to avoid the spread of the Covid-19 virus.
Stay well.
