For the vast majority of Americans, the greatest financial asset they have is their ability to earn income. Very few people consider the possibility of insuring this asset which is often equal to millions of dollars over the course of one’s working years. This insurance covers temporary as well as permanent disabilities. 25% of Americans will experience a illness or injury that removes them from work for an extended period of time. The majority of these instances it is temporary, but the financial impact is often devastating, and often costs the person and their spouse their hard earned retirement assets which can often ruin a retirement plan.
Disability Income Insurance is an inexpensive way to protect against the risk of losing your income due to getting sick or hurt. While most companies’ workers compensation insurance will provide you some protection, it will only cover you if you’re injured while working on the job. However, if you get sick, or get injured anywhere off the job you will not be covered and Disability Income Insurance will be crucial to get you through this financially challenging time of recovery.
If you have no Disability Income Insurance provided through work, this will be available to you (certain occupations can be denied by the insurance company).
If you have a group Disability Income Insurance policy, an individual policy can provide a larger amount of coverage than a group policy can, and you may get an individual policy in addition to your group policy to cover this shortage in protection.
Also, an individual Disability Income Insurance policy is portable. Meaning if you get a policy while working for your current company, then decide to move to a new company, or even a new career, you will get to keep your policy and the costs will not change.
Disability Income Insurance also has a wide range of additional benefits and many will refund to you 100% of the premium you’ve paid to the company, if you never became disabled and used it, or the difference if you’ve collected less income through claims than you’ve paid in. Financially speaking, having Disability Income Insurance is one of the very best decisions you can make.
If you are a business owner or a key person at your company, what would happen to the business if you were unexpectedly unable to go to work for an extended period of time or permanently? It does happen and it can devastate a business. Disability insurance can be purchased by a company on one of it’s key employees or owners with the purpose to cover the lost value and give the business enough financial resources to withstand this shock or hire a replacement in the event of a permanent disability.