Disability Insurance
"Anyone that relies on a paycheck, needs to have this kind of coverage."
Keith Hoffman, NFP Corp
Who can get disability insurance?
Individuals Businesses
What does disability insurance cover?
Short Term Disability Long Term Disability Temporary Disability
"YOU NEVER THINK IT WILL BE YOU."
The chance of missing months or years of work because of an injury or illness may seem improbable, especially if you’re young and healthy and you work at a desk.
But the truth is that one in four people will experience a disability for 90 days or more before they reach 67, according to the Social Security Administration.
What kind of policies are available?
Total Disability
If being sick or injured prevents you from performing the material and substantial duties of your regular occupation, and you are not gainfully employed in another occupation, a total disability policy will pay a monthly benefit which could be up to $20,000.
Recurrent Disability
If the same or a related disability occurs within six months of a return to full-time employment, it is considered a recurrent disability, a recurrent disability policy will pay a monthly benefit which could be up to $20,000.
Transplant Donor Disability
Transplant donor benefits will pay you benefits on the same basis as any other sickness if you become disabled as the result of a transplant of part of your body to another person. Benefit payments could be up to $20,000.
What determines how much disability insurance will cost?
- Your age and health: You’ll pay more the older you are and the more health problems you have
- Your gender: Women usually pay a little more because they tend to file more claims
- If you smoke: You pay less if you don’t smoke
- Your occupation: You’ll pay more if you work in a job with a high risk of injuries
- The definition of disability: The broader the definition of disability, the higher the premium. A policy that covers you if you can’t work in your own occupation but could earn income in a lower-paying job will cost more than a policy that covers you only if you can’t work at all.
- Length of waiting period: This is known as the elimination period. You can reduce the premium by increasing the waiting period before benefits kick in.
- Your income: The more income you have to protect, the more you’ll pay for coverage
- Length of benefits: The longer the period that the policy promises to pay out if you become disabled, the more you’ll pay in premiums