Disability Income Insurance

As the US population ages, the percentage of people with disabilities increases. In the US in 2016, less than 1.0% of the under 5 years old population had a disability. For those ages 5-17, the rate was 5.6%. For ages 18-64, the rate was 10.6%. For people ages 65 and older, 35.2% had a disability.

–Disability Compendium, 2017 Disability Statistics Annual Report

Musculoskeletal disorders affecting the back and spine, knees, hips, shoulders, and other parts of the body is the second most common reason for a short-term disability (after pregnancy) and the most common reason for long-term disability, creating the need for disability income protection

–Council For Disability Awareness, Disability Statistics (Updated March 28, 2018)

No one wants to consider the possibility of a disability. But it is important to be prepared as a disabling condition not only can impact your quality of life, it can result in lost income and incur high medical bills.

While it is true that as the US population ages, the percentage of individuals with disabilities increase, disability can affect both old and young workers. And a disability doesn’t have to be a dramatic physical condition to inhibit your ability to earn income. According to the Council for Disability Awareness, musculoskeletal disorders (affecting the back and spine, knees, hips, shoulders, and other parts of the body) are the second most common reason for a short-term disability (after pregnancy) and the most common reason for long-term disability.

Many people assume Social Security Disability Insurance (SSDI) will cover all of their necessary expenses. SSDI is absolutely an important resource to be aware of if you experience a disability but it will, by the Social Security Administration’s own admission, only provide modest monthly benefits, and approval is subject to very strict guidelines.

This is where a Disability Insurance policy comes into play. Disability Income Protection protects your most valuable asset—your ability to earn income from work. If you experience a qualified illness or injury, a DI Insurance policy will issue you monthly benefits that you can use for medical expenses, living expenses, and to recover lost income.

There are two main types of Disability Insurance: Short-term and Long-term.

Short Term Disability

  • Typically have a waiting period 0-14 days after exhaustion of sick leave or PTO,
  • Benefits, in most cases, last for 52 weeks
  • In some cases, benefits can extend for two years.

Long Term Disability

  • Typically have waiting periods of a few months after exhaustion of sick leave or PTO.
  • Benefit periods range from a few years to retirement age.

Many policies have the option to issue benefits for partial disability—that is if, you do not meet the policy’s definition of a total disability but have a qualifying condition that affects your ability to earn income.

Want to know how Disability Income Insurance can address your specific needs? Contact us now to explore your options.

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