Disability Insurance

For those who rely on a paycheck, your most valuable asset may not be your home, auto or bank account. Rather, it is your ability to earn a living. In the event that you become disabled, your ability to earn a living will be impacted. Disability insurance replaces a portion of your income if you can’t work for an extended period of time due to illness or injury.

There are two types of disability insurance coverage, short-term and long-term. The chart below outlines the basic differences.

Short-Term Disability	Long-Term Disability
Typically replaces approximately 60-70% of base salary	Typically replaces approximately 40-60% of base salary
Benefits pay out for a few months up to one year depending on the policy provisions	Benefits pay for more than 12 months and end when the disability ends. If the disability continues, benefits end after a certain number of years or at retirement age.
May involve a short waiting period after you become disabled before benefits are paid	Common waiting period is 90 days after you become disabled before benefits are paid

Why do I need Disability Insurance?

While some employers offer disability insurance as an employee benefit, others do not, leaving you exposed to potential financial hardship in the event of a disability. Often times, people dismiss the need for coverage as they only consider the worst case scenarios such as injuries from a devastating accident. However, disability claims can result from back injuries, heart attacks, cancer, diabetes or other illnesses. Self-employed people do not have employer-sponsored benefits, therefore it is critical for business owners to have disability income insurance protection.

Benefits of purchasing Disability Insurance

Purchasing an individual disability insurance policy provides the following advantages:

You can customize coverage options to include extra features such as cost of living adjustments.
It is portable. If you change jobs, you do not lose your coverage, unlike employer-sponsored Disability Insurance plans which end when your employment terminates.
You control the coverage. As long as you pay the premiums, your coverage remains in force. With employer-sponsored plans, your coverage could end if the employer chooses to stop offering this benefit.
You and your agent can choose the insurance carrier that best suits your needs.

For a complimentary Disability Insurance quote, please contact our office at 234-200-5230.

This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. Guarantees are based on the claims paying ability of the issuing company.