Don't Be Derailed by a Disability

Forty-three percent of all 40-year-olds will be disabled for 90 days or longer before they reach age 65.¹ In other words, you have almost a 50-50 chance of being laid up for three months or more before reaching retirement age.

If a debilitating illness or accident were to put you out of commission for three months or more, could you support your family?  Do you have a way to meet your basic financial needs — particularly in light of rising medical bills?

One approach to consider is purchasing a disability income insurance policy. Disability  insurance is designed to help replace a portion of your income if you were to become ill or injured and are unable to work. In exchange for regular premiums, an insurance company agrees to provide up to 60 percent of your income if you become disabled.²

When considering a disability income insurance policy, there are a few things to keep in mind.

Find a policy that provides coverage when you are unable to work in your present occupation. Otherwise, the insurer won't have to pay unless you can't work at all.

Purchase a noncancelable policy. It cannot be canceled as long as the premiums are paid.

Purchase a policy that offers residual benefits. This will enable you to receive partial benefits if you are able to return to work part-time.

Make sure that the policy has a rider that enables you to buy more coverage as your income increases.

Disability income insurance can help prevent your financial plans from being derailed by illness or injury. A disability income policy may be just what you need to help make sure that your family's financial plans stay on track.
 
1) 2003 Field Guide, National Underwriter, 2003
2) Disability income insurance has certain limitations and exclusions. The definition of a qualifying disability will vary by policy.

© 2004 Emerald Publication

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