You have insured your car. You have insured your home. Hopefully, you have insured your life. Some thoughts to consider are: have you insured your paycheck? Imagine falling ill or getting injured in an accident. How long would you be able to keep up with your monthly expenses if you could not work for an extended period of time? The truth is that roughly 50% of our workforce would face financial difficulties within a month or so. Statistics show that you have a 3 in 10 chance of suffering a disability that will delay you from returning to work for 90 days or more.¹ Statistics also show that 90% of disabilities are a result of an illness.² Having Disability Insurance enables you to continue to receive a portion of your income until you are able to return back to your place of employment. Any person that is employed should absolutely consider Disability Insurance. At GE Insurance, we are licensed to work with clients in PA, NJ, DE, MD, NY, DC, SC, IL, and FL.
Disability Insurance Benefits
If you work full time, you may already have health or life insurance and may be wondering, “how could Disability Insurance benefit me?” The truth is that Disability Insurance offers injured workers many benefits that other types of insurance alone simply cannot.
If and when you become severely injured or unable to work, due to an illness (some mental illnesses like anxiety, depression, and more can also apply) health insurance usually helps pay for the cost of your treatment and hospitalization, if that is necessary. Health insurance won’t however supplement your income if you are rendered unable to work for an extended period of time. Mortgage payments, child care costs, and other daily living expenses don’t go away just because you are unable to work. Most individuals and families rely on their regular paychecks to get by, and missing extended periods of time unexpectedly can be devastating.
This is where Disability Insurance comes in. A typical disability policy will pay 60% of your income. This means your DI policy can pay you a majority of what you are losing in missed income without having to take out a costly loan or going into the red.
Another benefit of Disability Insurance is that if you qualify with a medical exam and pay your premium, you have an active DI Policy. Other options such as workers’ compensation benefits or social security disability insurance have strict requirements for eligibility and can take a long time to get approved.
Disability Insurance Riders
Optional add-ons or “Riders” are a great way for you to customize your policy to fit your needs. Disability Insurance riders allow you to add extra features to benefit you and protect you, the client. Some of the most commonly used ones are described below:
Guarantee of Physical Insurability Rider
You may purchase additional amounts of base monthly benefits on each policy anniversary, without proof of medical insurability. In other words, if you are interested in paying a higher premium, you have the ability to increase the benefit that you would receive if you were to become disabled. This is a modification that can be made without the need for another medical exam.
Residual Disability Rider
Also known as Partial Disability, this rider covers you in the event that you become disabled, but can still work in a limited capacity. With this rider, you will receive benefits in proportion to your loss of earnings. An example would be: If you lost 25% of your income, you would be able to receive 25% of your base monthly benefit from your DI policy.
Own Occupation Rider
This will pay out your full monthly disability benefit and allow you to work elsewhere in another capacity. In other words, you can work in a different occupation, receive your salary and still get your full disability benefit. For example, if a surgeon becomes disabled and can no longer use his or her hands to perform surgeries, they can become a professor in the same field, earning a salary while still receiving their full disability benefit.
Cost of Living Adjustment Rider (COLA)
This rider allows your monthly benefit to keep up with inflation. Your benefits will increase annually with this rider. This only happens when you become disabled.
Unlimited Mental Disorder Rider
Insurance companies will pay a full monthly benefit for medical conditions such as anxiety and depression.
This provides additional funds on top of the monthly benefits from your DI policy in the event that you become catastrophically disabled.
Learn More About Disability Insurance
We are licensed to sell disability insurance in the District of Columbia and the following states:
- New Jersey
- New York
- Washington, D.C.
- South Carolina
Contact me today to learn more about how disability insurance, long-term care insurance, and other solutions can help you prepare for the unexpected.
¹The Real Risk of Disability in the United States, Milliman Inc., on behalf of the LIFE Foundation, May 2007
²The Council for Disability Awareness, Long-Term Disability Claims Review, 2010
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