Don’t Overlook Disability Insurance

February 27, 2013

Most of us are in the mindset that we will always be healthy enough to work and earn an income. Unfortunately, injuries occur, accidents happen, and serious illnesses strike many individuals.  Disability insurance protects your income in the event that you become disabled and can no longer work to earn a living. The negative ramifications of being unable to work should make one very concerned, yet many do not have the proper coverage necessary to insure against such risks.

  • Over 51 million Americans are classified as disabled, representing 18 percent of the population. U.S. Census Bureau, Public Information Office, November 2008
  • In the U.S., a disabling injury occurs every second and a fatal injury occurs every 4 minutes. National Safety Council, Injury Facts 2008 Ed.
  • 3 out of every 10 workers entering the work force today will become disabled before retiring. Social Security Administration, Fact Sheet January 31, 2007
  • Over 6.8 million workers are receiving Social Security Disability benefits, almost half of which are under age 50. Social Security Administration, Fact Sheet January 31, 2007
  • While many people think that disabilities are typically caused by freak accidents, the majority of long-term absences are due to back injuries and illnesses such as cancer and heart disease. Council for Disability Awareness, Long-Term Disability Claims Review, 2007

There are many types of disability insurance plans available in the marketplace. Premiums are determined by major factors such as: one’s occupation, the overall health of the individual, and income history. If your occupation is in an industry that is categorized as a high risk for injury, such as construction worker or electrician, then the premiums will be higher than someone who is in a low risk category, such as an office worker.

Not all disability insurance policies are created equal.  It is imperative that you carefully evaluate what a policy will cover and for how long, as well as what the policy’s exclusions and limitations are, before purchasing it. You should also know how long it takes for a claim to be processed and for benefits to begin.  The following are other factors related to the claims process that are important to consider:

  • Was the disability unpredictable? (i.e. not the result of a previously diagnosed  illness or condition)
  • Was the disability attributed to performing duties specifically to the job?
  • How much money will be paid and when?
  • How long will payments continue for?

Having disability insurance is important; however, there are so many different options to choose from that it’s difficult to know which one will be the best for your specific needs. The licensed agents at Dave Terpening Insurance Agency, Inc. have years of experience assisting clients in finding the disability insurance policy that best meets their specific needs and fits in their budget. To inquire about disability insurance and discuss your options, please call our agency at: (800) 585-1776.

Post author Loren Pleet