people recognize the need for life insurance. Life insurance
protects your family financially, should you die
prematurely. But many people do not understand the need for
disability insurance. Disability Insurance is, in essence,
“income replacement” insurance. You buy it as protection
against the chance of losing income while disabled and not being
able to meet expenses.
FACT: Almost half of all mortgage foreclosures are
due to a disability.
know that disability strikes working people far more often than
premature death? A 20 year old man is about three
times more likely to be disabled for at least 90 days than he is to
die before the age of 65. And a 35 year old woman is about
seven times more likely to face disability than
death before 65!
you are disabled, your income stops - but your bills
you pay your bills if you were unable to work because of illness or
accident? Where would the money come from?
your greatest asset is your ability to work and earn an income. Cut
this off and you and your family are in trouble! You are potentially
saying goodbye to millions of dollars of earnings over your
*What Is Your Earning
Potential to age 65?
||Current Monthly Income |
assumes a 5% annual increase.
probably didn’t realize just how big of an asset you really are.
you doing to protect your millions of dollars worth of income?
designed disability insurance program based on your personal needs
and budget can give you up to 2/3 of your income, tax
How Much Coverage
disability insurance you should apply for depends on many
Lifestyle: What does your current standard of living
cost and how do you feel about having to cut back?
people depend on your income? Are
single parent or a non-custody parent with financial
responsibilities? Do you have parents or siblings who depend
on your income?
Employment Flexibility: Would you be willing and able to
Debts: What is your total debt obligation and how
would you continue to make payments? How long would your savings
Dreams: What sort of retirement plans or goals
could you achieve with no income and your savings
Loans: Is your bank president likely to loan you
money if you are disabled and have no income replacement
already have a disability insurance policy, you probably have a
basic idea about the terms of coverage. But unless you’ve actually
made a claim, you may be a little sketchy on the details.
definitions of disability, benefits, and waiting periods often vary
widely from one plan to the next.
strength of the definition of disability, in your contract,
is the most important component and should have been the
determining factor in your decision to purchase your Disability