Disability Income Insurance
Many people think that a disability is something that happens to “other people.” The reality is, becoming too sick or hurt to work can happen to anyone at any time. Did you know that according to the Social Security Administration, 1 in 4 people will become disabled before they retire? That's a very scary fact! A disability may not even be the result of a tragic and unexpected accident; perhaps slipping on that discarded banana peel on the sidewalk or the escalator that hasn't been properly serviced. Often, a disability can come about due to some other medical condition such as a back injury, heart disease, cancer or other illness.
Disability income insurance helps protect you and your family from financial issues due to a loss of income should you become disabled as the result of an illness or injury. This coverage replaces a portion of your income if you become disabled and are no longer able to work. Depending on the policy you choose, coverage could be 60%, 70% or even 80% of your current salary. The right protection will give you and your loved ones the means to support yourselves during this difficult time. This is precisely why disability income insurance is an important core component of your financial planning...your financial life.
Disability Income Insurance comes in three main forms:
- Government-sponsored programs: These include workers’ compensation and the Social Security Disability Insurance (SSDI) program.
According to the Social Security Administration (Office of Disability and Income Security Programs), more than 60 percent of the 2.1 million people who applied for Social Security Disability Insurance (SSDI) in 2005 were denied. Even if you were approved for this government program, SSDI benefits alone may still leave you below the Federal Poverty Level. According to the National Safety Council, the vast majority of worker's compensation claims for disabling accidents or illnesses are not work-related, and therefore not covered by workers’ compensation
- Private employer-sponsored group disability plans: This coverage is an important benefit for many employees. It provides income replacement that enables employees who are disabled to pay bills and maintain their lifestyle.
Employers may sponsor short term or long term disability coverage, or a combination of both. The employer often
pays for all, or part, of the premiums required for the coverage.
Even if you have group disability insurance through your employer, typically, plans provided will only cover 60 percent of your monthly income, up to a specified maximum monthly benefit. This may not may not cover your bills and financial obligations. Employer provided disability coverage is also not portable when you leave the company. A good solution to these problems is purchasing your own private individual disability income policy.
- Private individual disability income policies: Individuals pay for these policies. They are guaranteed income when there isn’t enough employer-sponsored or government-sponsored coverage.
Through our strategic partnerships with insurance providers, we offer a variety of individual disability income insurance products and plans as well as disability insurance products for business as well. Please browse through this section to learn more about the disability income insurance product right for you or your business, however we encourage you to contact us to discuss your specific needs or to see if there are other options available.
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Short Term Disability Insurance provides benefits, often as a portion of salary, during a period of short term disability. Short term Disability Insurance may be the right option for you if:
- You want immediate coverage from the first day of your disability
- You only need coverage until your employer-provided disability insurance would begin paying benefits
- You’re interested in protection that is portable, not tied to your job
- You are willing to accept a shorter benefit period to keep the premium as low as possible
Learn more about Short Term Disability Insurance»
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Long Term Disability Insurance plans provide income for an individual who has become disabled and is no longer able to work. The compensation provided is either a flat amount or based on a percentage of the regular income. Long Term Disability Income Insurance is best for you if:
- You have resources that could cover your living expenses for the first few months of a disability (elimination period)
- You want comprehensive, long-term benefits that would cover disability from an accident or sickness
- You prefer more rider options so you can tailor coverage to meet your unique needs
- You’re interested in protection that is portable throughout several years of your career, even up to age 67
Learn more about Long Term Disability Insurance»
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High-limit disability insurance is designed to keep individual disability benefits at 65% of income regardless of income level. Coverage is typically issued supplemental to standard coverage. With high-limit disability insurance, benefits can be anywhere from an additional $2,000 to $100,000 per month. Single policy issue and participation (individual or group long-term disability) coverage has gone up to $30,000 with some companies.
Learn more about High Limit Disability Insurance»
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Sometimes, clients with serious health issues may be declined for regular disability income insurance coverage. There are however, options with many of the carriers we have partnered with bringing plan availability to those who would otherwise be declined.
Learn more about Sub Standard Disability Insurance»
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Accidents are a known and unfortunate fact of life. What makes them worse, is that we don’t know is where or when they’ll occur...but it always seems to be at "the worst possible time." It is for this reason why Accident Only Disability Insurance plans were created. Policies of this nature are designed to provide you coverage for disabilities resulting from an accident ONLY. This proves especially useful in situations where a health condition prevents you from a traditional long term or short term disability insurance policy.
Learn more about Accident Only Disability Insurance»
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Employers may offer group short term or group long term disability insurance plans for their employees.
Learn more about Business Disability Income Insurance»
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