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Common Insurance Questions

Why do I need Disability Insurance? Click for the Answer..

Won't Social Security Help me? Click for the Answer..

What are the Defininitions of Disability? Click for the Answer..

Helping Understand your Disability Insurance Options Helping to Protect Your Family, Your Future, and Your Happiness!

Frequently Asked Questions

Why should I purchase disability insurance now?

As with most types of insurance, the older you get the more expensive the coverage will become. Statistically you may be more likely to become disabled, as you get older. It is not guaranteed that you can be insured and as you increase in age; this will affect your ability to acquire a policy. Most importantly an accident or debilitating illness could strike at any time.

How much coverage should I consider?

You should consider obtaining enough coverage to maintain the present lifestyle your family has. This means taking into account rent or mortgage payment, food, automobiles and other monthly expenses. You should be aware that income from Social Security benefits or employer related plans most likely would not come close to covering your expenses. Typical policies range from 60 to 70 percent of pre-tax income.

The table below calculates what your potential earnings may be up to age 50. Thus if you were to become disabled at age 35, and your monthly income was $3,000 per month, you would face a lifetime loss of $1,460,451.00 in wages.

Current Monthly Income

Age

$2,000

$3,000

$4,000

$5,000

$7,000

$10,000

$15,000

25

1,449,648

2,174,471

2,899,295

3,624,119

5,073,767

7,248,238

10,872,357

30

1,199,867

1,799,801

2,399,735

2,999,669

4,199,563

5,999,337

8,999,006

35

973,634

1,460,451

1,947,268

2,434,085

3,407,719

4,868,17

7,303,254

40

768,727

1,153,091

1,537,454

1,921,818

2,690,545

3,843,636

5,765,454

45

583,137

874,705

1,166,274

1,457,842

2,040,979

2,915,684

4,373,527

50

415,042

622,563

830,084

1,037,605

1,452,647

2,075,210

3,112,815

How long do plans pay a benefit?

There are many different plans with different options on this. The best plan would be one that will replace the lost income until you are 65 years of age. Any other will not meet the demands of your financial obligations.

What is the definition of disabled?

This will be a critical element to any policy that you purchase and with each policy the definitions will vary.

Unable to Continue in Your Present Occupation
You should consider a plan that defines "disabled" as being unable to continue in your present occupation. Most workers have obtained a skill that pays them at a salary reflective of that. A good policy is going to replace the income that you would have lost if you are no longer capable of that earning power.

Unable to Perform "Any Occupation"
There are plans that call for you to be unable to perform, "any occupation". These should be avoided, as they are not reflective of your loss.

What is an Elimination Period?

An elimination period is similar to the deductible on an auto policy. It will be the amount of time, generally quantified in a number of days, where you will have to wait until benefits are paid. As in an auto policy this will have a direct effect on the cost of your premiums.

A typical Elimination period would be approximately 90 days. This means that in order to be protected, you would need to have your own financial resources to last 90 days without any income.

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