Disability Happens

Did you know that medical bills related to illness contribute to one out of every four bankruptcies in the United States?¹

A disability caused by illness or injury that prevents a household member from working can create an alarming cycle whereby income decreases as expenditures rise. Under this scenario, the typical household may be forced to dip into savings or go into debt, or both, to pay living expenses and medical costs.

It’s easy to think that your chances of being laid up with a disability are remote, but the statistics are disturbing. More than four out of every 10 people between the ages of 30 and 50 will suffer a long-term disability (lasting 90 days or more) prior to age 65.²

Do you have a way to help protect against the financial ruin that can be caused by a disability?

Policy That Works for You

Disability income insurance can replace a percentage of your salary if you should experience an illness or injury that makes it impossible for you to continue working. Benefits may last for a set number of years or even until retirement age and are usually not taxable if you pay the premiums yourself. Some plans pay a benefit if you are unable to perform your current occupation, whereas stricter policies require that you be incapable of working at any job.

An employer-sponsored group disability policy is a fairly common employee benefit, but it doesn’t offer the same level of coverage as an individual policy. Group policies generally pay less than the 70% to 80% of income that individual policies commonly offer, and the benefits are usually taxable. If you are highly compensated, the maximum benefit paid by a group policy may not even begin to replace your salary.

It can be uncomfortable to think about becoming too incapacitated to work and pay the bills, but it may be less uncomfortable than being unable to work and worrying about how to pay the bills. If you become disabled, a disability income insurance policy may help you focus on getting better rather than going broke.

1) CNNMoney, September 25, 2006
2) 2006 Field Guide, The National Underwriter Company