We all spend a lot of time thinking about and hopefully planning for our retirement and even purchase life insurance to help those we leave behind when we pass. What is often overlooked is how we plan and protect ourselves during our working years between now and then. Statistics show that 7 out of 10 workers become disabled at some point between the ages of 30-65. In addition, most families have only enough money to cover two months worth of bills. If you suddenly became disabled how would you pay your bills and provide for your family? If you are planning on relying on government disability payments you will surely come up short.
By purchasing Disability Insurance (DI) you can essentially replace your pay check in the event that you are unable to work due to a physical or mental condition. DI policies can be structured to fit your situation and based on age, job description, health condition as well as a few major factors including the benefit period (typically 2 years, 5 years or until age 65) and elimination period/waiting period (typically 30, 60, 90 or 180 days). Another huge differential is whether the policy is “any occupation” meaning that you are disabled to the point of not being able to perform the functions of any job, or “own occupation” meaning that it pays you benefits if you are unable to perform the functions of your specific job. Typically, “any occ” policies have lower premiums than “own occ” policies.
In addition you can add optional riders to fit your needs such as a Cost of Living Adjustment (COLA) which offers annual adjustments to keep your benefits in pace with inflation. Another option is a Future Purchase Option which enables you to buy more coverage in the future without being required to go through additional underwriting.
If you are considering DI it pays to secure a policy before you run into any health related issues that might make it harder to obtain a policy. After all, we insure all our valuable possessions including our homes, cars and jewelry yet often forget about insuring our most valuable asset which is our ability to work and earn an income.
** Don’t forget that we are available to review any existing insurance policies that you have….we might even be able to get you more coverage for the same premium amount you are paying now!!** Please contact our office today for more information. 925.462.6007.