What is Disability Insurance?
Disability insurance provides you with financial security when
an accident or illness causes you to be disabled and unable to
work or earn an income, which is normally one's greatest asset.
Disability insurance replaces a portion of your income if you
become unable, through injury or illness, to work. Policies differ
on how soon you would collect benefits and for how long. They
also vary in whether disability benefits are received if you can't
perform the duties of your own occupation, a job in your field,
or any job at all.
Disability insurance benefits are almost always payable on a
monthly basis, while the disability continues. Upon recovery from
a disability, the policy continues. Benefits could potentially
be payable again for subsequent disabilities or for the recurrence
of a prior disability. If the disability insurance policy is paying
a disability benefit to the insured and they die, a nominal life
insurance benefit is usually payable in a lump sum and will end
Why Do I Need Disability Insurance?
Most people are unaware of the startling disability statistics.
Often they have purchased life insurance to protect their families
in the event of death before even considering disability insurance.
In fact, the odds are far greater that a person will become disabled
in a given year than that he or she will die. There is at least
a nine times greater chance of suffering a disability of at least
90 days as compared to the chances of death (up to age 37). While
death may be inevitable, disability is more probable at any given
age as illustrated below.
Analyze Your Disability Insurance Needs
Of 1,000 Males and Females, how many will be disabled for 90
days or more before age 65?
*Sources: 1985 Commissioner's Disability Table A (Experience
Table) & CIA 86-92 Aggregate Mortality Table.
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