- Disability income provides income continuation during an accident or sickness that prevents you from working
- Supplements reduced income to your family that results from being out of work
- Guarantees and income stream for living expenses regardless of the stock market and general economic conditions
- Restores lost benefits from employer group long term disability plans that typically discriminate against higher income earners
- Insulates retirement savings from erosion, especially when pension or profit sharing plans additions cease during disability
The benefit of purchasing DI while you are young and healthy is that you will qualify medically by passing the insurance exam and lock in a premium rate at your youngest age that remains constant for the entire benefit period.
Individual plans are portable and travel with you. They have no bearing on whether or not your employer offers any coverage, reduces their promise of benefits or cancels benefits all together.
Why is Disability Insurance so Important
- Your goals and plans depend on your income. So, you need an income that you can depend on.
- A few things in life are certain…. Death, Taxes and the inability to Harvest Cash Flow to meet your financial obligations if you become sick or hurt and unable to work.
- Life Changes in the blink of an eye.
- Life throws Curveballs. Be prepared.
- No matter how secure you financial future seems, you do need to be prepared for the worst as well as the best.
- A disability can destroy your financial security in a matter of weeks or months.
The heartbeat of a Disability Income contract is the definition of Total Disability. This states under what conditions the policy will be paid and for how long.
Be aware, the devil is in the details. Definitions vary among carriers:
- True Own Occupation
- Transitional Own Occupation
- Modified Own Occupation
- Any Occupation, or Income Replacement
Understanding the contact terms before making a purchase decision is key. You cannot make any changes to the contract at the time of claim because now you have a pre-existing condition.