What is Disability Insurance?

Disability insurance is an essential form of protection for anyone working at risk of becoming disabled due to injury or illness. It is designed to protect your income and, therefore, your lifestyle in case of unforeseen circumstances that cause you to be unable to work.
So, protect your assets through Disability Insurance, especially for business owners and professionals.

Make sure you’re adequately covered in the event of a disability. 
Get a policy that ensures that most of your expenses are covered. From rent, mortgage, food, utilities, and credit card payments to your family’s needs like your child’s school, dental, extra activities, and your spouse’s needs. 
Having the right disability insurance coverage can mean the difference between having financial security (if you become unable to work) and facing a potentially catastrophic financial loss.
Let’s look at disability insurance in more detail:

Definition of Disability

By definition, “Disability is a physical or mental impairment; it can be a deficiency in the working of any body organ than the standard of an individual organ or a group of organs.” Physical disabilities are categorized into upper and lower limb disabilities, manual dexterity, lack of coordination with body parts, immobility of different organs of the body, and people with broken bones also fall into physical impairment. Head injuries are termed as severe disabilities; they can be mild to severe. ABI (Acquired Brain Injury) and TBI (Traumatic Brain Injury) are their two types. A mental disability may refer to a mental disorder, a behavioral or mental pattern that causes significant distress or impairment of personal functioning. (Source: Wikipedia)

Disability Statistics in the US

Disability affects millions of people in the United States, yet many are not aware of its prevalence. According to Statista, 13.4 percent of the U.S. population has some type of disability. The most common types of disabilities are physical impairment, hearing and vision, lack of mental capacity, and cognitive disability. 

Disability is especially common among older individuals, with nearly half of those aged 75 years and older living with a disability. Disability can have serious implications for quality of life and can prevent individuals from participating fully in their lives or working at all. As of 2019, five percent of those aged 21-64 had an ambulatory disability, with 31 percent of Americans (75 years and older) suffering from this condition. In some states, such as Arkansas, West Virginia, and Mississippi, the rate is even higher. On the other hand, Utah and North Dakota have reported much lower rates of ambulatory disabilities at 4 and 4.6 percent respectively. (Source:Statista)
These numbers should underscore the importance of Disability Insurance for all Americans – regardless of age or state – to help ensure that they do not suffer financial hardship due to a long-term disability.

Who Decides Whether I’m Disabled?

Your doctor and Disability Examiners can determine if you may be considered a person with disabilities. Generally, a person is considered disabled if they have physical or mental limitations that impede their daily activities.

The Disability Examiners will review your medical records and other evidence to determine if you meet the criteria for disability. The criteria for disability vary depending on the type of disability you are claiming.

What is Disability Insurance?
Learn More & Get Insured

Disability Insurance is your key to financial stability.

  • Disability insurance provides a stipend to those who are disabled, either short-term or long-term. Short-term disability insurance covers partial disability and lasts between 30 days to 24 months, while long-term disability insurance can last from 6 months up to retirement age. Some insurers even offer lifetime policies in some cases! Disability Insurance is an invaluable tool that will help ensure you have the financial security you need regardless of what life throws at you.
  • Disability insurance policies may be available as a benefits package from an employer or an association plan. However, since you will not go thru an underwriting process, therefore these plans are filled with many exclusions and limitations whereby you should consider a “gap” or a Supplemental Disability Policy to cover yourself against the pot-holes of an Employer Disability InsurancePlan where your base income is taxable from the 50% or 60% of your base salary. No overtime or bonuses are calculated.
  • If you have a small business with two or three employees, you can also purchase disability insurance that would benefit you and others. Both short-term and long-term plans will start protecting you immediately after an accident without any waiting period and seven (7) days after an illness. The duration for short-term disability definition and length of payments is 90 days. Then any disability coverage needed after 90 days, a long-term disability insurance policy will take over paying for your lifestyle expenses.
  • Most short-term disability group plans may cover ordinary maternity as any other illness and will pay benefits. However, a waiting period is 270 days after purchase and before being eligible for maternity benefits.
  • Individual plans are available to purchase and will begin to pay after 14 or 30 days and would pay for 90 days, 180 days, one year, or two years as Short Term Disability policies. Even though, technically, short-term ends at the end of 90 days, the plans are designed for individuals seeking minimal protection.
     (Note: Individual plans do NOT cover pregnancy except if it is due to pregnancy complications.)
  • Signing up and paying for such a policy now will consider your current income and health condition. The amount you pay monthly is determined based on several underwiring factors like occupation class, age, gender, and health conditions at the point of application. Then, if it is ever necessary to use the insurance policy, the policy will provide you with financial aid for up to two years based on the tax-free benefits package.

Essential details regarding Disability
Insurance to keep in mind

  • A disability is defined as the inability to perform your job due to injury and/or illness.
  • With disability insurance, you can receive your chosen monthly payouts if a claim is approved following an accident or illness and after you exhausted your the waiting period.
  • Several factors must be considered when deciding the amount of compensation you will receive. These include your current health status, income level, work environment, and how much coverage you chose when initially purchasing the policy.
  • When you are deemed unfit to work in your specific occupation,  if you have short-term or long-term disability insurance Monthly Benefits will continue while you receive care from a physician. The coverage will persist as long as you remain incapable of performing your job due to diagnosis.

Are You Covered Through Your Job?

Some employers pay for or offer disability insurance, but you may not need it unless you would be considered uninsurable by an insurance company due to your current medical condition. Yes, employer plans are free, or the employee pays a minimal premium.

So, it’s recommended that you get a copy of your employer plan and seek advice from a disability insurance advisor or broker knowledgeable about disability insurance policies available and that will look at your personal circumstances. You might benefit from investing in a supplemental disability insurance policy to fill in the vast gaps in the free group disability coverage.

Note: Employer Disability plans will pay if you can not do any of your job occupation descriptions. That means if you can do one of your job occupation descriptions, then you will not be considered disabled, and you may not receive your full benefits.

How much does disability pay?

Disability insurance helps to bridge the gap between medical care and financial need if you become disabled. Disability insurance pays a percentage of your pre-disability income when an illness or injury prevents you from working. Depending on your individual policy, 60-70% of your income is tax-free, while employer-paid group plans pay 60% as taxable income of your base salary. Anxiety and depression are triggers of a disability policy.

For those who have experienced a catastrophic disability, it can be even tougher to manage day-to-day activities. Catastrophic Disability insurance can provide additional coverage if medical treatment and attention are needed. Catastrophic Disability insurance can pay an additional sum for severe disabilities, such as help with bathing, dressing, transferring, incontinence, toileting, and eating, or having a cognitive problem like dementia. Disability insurance can give you peace of mind knowing that you are covered in case an unexpected disability occurs.

How much does social security disability pay?

The Social Security and Supplemental Security Income disability programs are the largest of several Federal programs that provide assistance to people with disabilities (Source. U.S. Social Security Administration). Most commonly, SSD Insurance is somewhere between $500 to $2000 per month as of 2018. It is calculated on the average lifetime earnings of citizens. SSDI pay varies for each recipient; the complex SSA formula is used to calculate earnings during the disability period. It usually takes five months or more to get on social security disability benefits from the first time of filing which means you can not do any job, at all. Most people get their claim approved after the second or third try and usually with the help of a disability attorney.

What is the Process to Apply for a Disability Insurance?

The best way to apply for disability insurance is with someone who knows the content very well, a disability insurance broker who works with all the reputable companies. Before applying, look for the best return rates. Compare quotes from all the insurance companies working in your state.
A medical examination may be necessary as a part of applying for disability insurance. Next, you will be asked for a phone interview by the company; your insurance broker will guide you through the process. After the company’s underwriting is completed, your policy will be ready for you to consider your options, reject the policy or change your options or just keep it as you applied.
Additionally, you can apply online disability shop that sells to thousands of people and hopes for the best when you have a claim or get an employer plan at tiny premiums where you can have a disability policy with lots of problems when you need to reach for the policy. These are your choices.

Ready to Live a Worry-Free Life?

Are you ready to protect your future and secure your family’s financial security?

Contact Rene Apack today to learn more about Disability Insurance and start protecting your future! With Rene’s assistance, you can have peace of mind knowing that your family will be cared for if something unexpected happens.
Don’t wait until it’s too late and your health starts to change
– get Disability Income Insurance with Rene now and ensure that you and your loved ones are protected!

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