Disability Insurance – General Overview

Have you ever wondered what would happen if you got sick or injured and could no longer work? If you are married would your spouse be able to help take care of you and care for your home, children, and make enough money to make ends meet for the family?  Do you assume your parents, brother, sister or a friend will help you get thru the disability?

Disability insurance is intended to replace lost income when the insured becomes unable to work due to medical reasons caused by either illness or accident.  The reason it replaces income is the employee at some point will run out of sick and vacation time yet be unable to return to work at which time they need income from someplace. To that end the Disability Policy is what kicks in at that point.

Everyone who works, unless they are otherwise independently wealthy, needs to consider having a policy. There are few resources available to the yet to retired when they become disabled, to cover the cost of living. Many may assume the Government will just take care of them, and yes under certain circumstances you may be able to get money from the government, however there are various hurdles to get over first many difficult to tackle. 

Generally if you have not worked and contributed to Social Security/Medicare for at least 10 years you will not be able to claim many benefits at the Federal Government level and states offer various levels of help.  Those who have made enough of a contribution to SSI and Medicare may be eligible for SSI Disability payments and likewise Medicare benefits for those under age 65. The SSI Disability benefits are somewhat limited and will not allow you to live the lifestyle you were accustomed to living prior to the disability.  You may find yourself with less than 35% of your prior to disability income coming in as a SSI-Disability payment which for most is not enough money to live, without giving up their prior to disability lifestyle.

With a disability plan, or stacked plans from your employer and an individual plan you may be able to ultimately replace most of your income. You generally pay for the disability income with after tax money so your benefits are generally paid on a pre-tax basis which does allow you to gross less disability income than prior working income and still live the same lifestyle to which you were accustomed. 

Contact us to discuss how a Disability plan fits your individual or group needs.