Disability Insurance

PROTECT YOUR PAYCHECK...

2010-10-14T15:27:00.000-07:00

DISABILITY INSURANCE OVERVIEW

2007-10-25T10:14:00.001-07:00

Overview
Disability insurance is a type of insurance policy that pays monthly benefits when you become unable to work because of a disabling physical or mental reason. You may be able to buy it at work or you can purchase it on your own and pay monthly premiums.

There are numerous types of disability insurance, from bare-bones policies to those with options galore. Your individual coverage will determine when your benefits actually begin, how much you receive, the limitations on your coverage, and how long you can receive benefits.

Who Needs It?
You must decide how much financial risk you are willing to assume should you suddenly find yourself unable to work for an extended period. Disability insurance is not really intended to cover a short-term injury or illness. If you rupture a disk in your back and are out of work for two months, it's not wise to draw on disability benefits because your future premiums may skyrocket. Instead, experts advise using your savings to live on for a couple months, even selling a mutual fund or stock or two if necessary, to cover a short-term illness. In some cases, your employer might pay sick-leave benefits.

Determining whether you need disability insurance is a personal choice. You must decide how much financial risk you are willing to assume should you suddenly find yourself unable to work for an extended period. How many months can you rely on your savings? How easy will it be for you to rebuild your nest egg for your retirement years? Can your spouse's income cover the lost salary?

Of the roughly 4 million Americans who have disability insurance, most are white-collar professionals. Some insurance companies won't cover workers in certain dangerous professions no matter how high their income, such as pilots, miners, and police officers.

Products
- Long term disability
- Short term disability

Long Term Disability covers you until age 65. This is what most people think of when they think of disability insurance. It is the most important type of disability insurance. No one should be without it.

Short Term Disability covers you for up to a year. This covers you for a shorter period of time. Great for accidents and maternity. Accident coverage is also included and can even be bought separately.

Supplying information to the insurance company can be a delicate process. The assistance of an insurance agent or advisor is almost always a huge help during this process. Fortunately, having help picking and getting a policy costs you nothing, and can save you a lot.

Are you ready to get started?
CORBIN LINDSEY
(425) 280-9169
corbin@lindseyadvisors.com

Top Five Reasons for Income Protection

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#5 Reason:

Maintain Your Lifestyle

When a disabled person's average living expenses totals more than $200,000 per year, savings accounts don't last long. And, bills keep piling up. Your income decreases and your expenses increase when you suffer a debilitating illness or injury. When life throws you a curveball, the last thing you want to think about is downsizing or cutting back. However, with a solid income protection policy in place, you will be able to keep your current lifestyle.

#4 Reason:
Ensure Your Future
The first contribution you stop making when you become disabled is to your 401K. If that happens, forget about a comfortable retirement. Without that retirement money, you and your loved ones will continue to struggle for years to make ends meet. You don't need to sacrifice your retirement dreams. With disability income insurance, paycheck protection is affordable and achievable.

#3 Reason:
Secure Your Children's Success
If you can't make meet your monthly expenses and pay your medical bills, how are you going to save for your children's future? In the wake of disability, saving for college often falls to the wayside. If there is no safety net in place, your only concern will be financial survival every day, not saving for the future. You can keep your children on the debt-free college-track with a solid disability insurance policy.

#2 Reason:
Safeguard Your Spouse
If you are the breadwinner of your family, you need to protect your paycheck. If you suffer a disability and can no longer work, your partner will likely need to work longer and harder to replace your income and cover medical bills. However, if you have disability income insurance, you can keep the bread on the table and prevent your partner from having to work multiple jobs.

#1 Reason:
Preserve Your Confidence
Getting injured is stressful. Not working is stressful. Mounting piles of bills are stressful. When you are injured, extreme stress can lead to slower recovery times and cause depression. If you are already suffering physical distress, you don't need the mental anguish the lack of income causes. You can avoid that pain and instill a sense of confidence with a solid income protection policy. With stress out of the picture, you'll be back to work in no time!

Which Insurance Carriers to consider...

2007-01-14T15:31:00.000-08:00

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