FAQ's 

Disability Insurance                                                                                           

Becoming disabled through an injury or sickness can mean a significant loss of
income. Disability insurance is a form of health insurance that provides a person who becomes disabled with income to cover living expenses that continue in spite of the disability.

Important Information You Should Know About Disability Insurance

Whatýs your most valuable asset? Your car? Your savings and investment accounts? Your house? It's actually none of the above.  Your greatest asset is your ability to earn a living. Think about it what would become of you and your family if you suddenly became disabled and were no longer able to work? According to Americaýs Health Insurance Plans, one-third of working adults say their savings would run out in three months or less if their family's primary wage earner lost his or her income due to a disability.

Disability insurance can play a crucial role in keeping you financially afloat if a disabling illness or injury strikes. But a survey by The Consumer Federation of America and The American Council of Life Insurers found that 82% of people do not have disability insurance or believe their coverage to be inadequate.

And itýs not just those with hazardous jobs who need to worry about becoming disabled: Illness actually keeps many more people out of work than accidents.

For these reasons, the non-for profit LIFE Foundation has put together the following six misconceptions people have regarding disability insurance and the risk of becoming disabled:   

1. I am in good health; I won't become disabled

According to the U.S. Census Bureau, nearly one in five Americans will become disabled for a year or more before the age of 65. An illness or accident that keeps one out of work can be very costly from medical bills, prescriptions and other unforeseen expenses.

2. I'm not in a dangerous line of work

Regardless of your occupation, if you have a job, chances are you needing disability insurance. Many people assume disabilities are caused by accidents. However, the National Institute on Disability and Rehabilitation Research reports that only 13% of disabilities stem from injury. The vast majority of disabilities are the result of illness.

3. Worker's compensation will cover me if I become disabled so I don't need disability insurance

Worker's compensation only covers you if you are disabled as a result of your job and many workers compensation programs follow strict guidelines and pay only limited benefits. Having disability insurance will ensure you are financially stable even if you become disabled outside of work.

4. The benefits I can get through Social Security eliminates my need for disability insurance

Don't count on it. It is extremely difficult to qualify for Social Security disability benefits. According to the Social Security Administration, in 2003 roughly 70% of those who applied were denied. If you do qualify, it takes five months or longer for benefits to kick in and, on average, pays out just over $800 a month.

5. I don't need individual disability insurance coverage, because I'm covered through work

Know the specifics of what type of coverage your employer provides. Talk to your companyýs benefits or human resources office to find out if the policy covers short or long-term disabilities and the benefit level paid out for claims. If the benefit coverage offered through your company wouldnýt be enough to help you make ends meet in the event of a disability, many companies offer the opportunity to increase coverage through automatic payroll deductions. You can also supplement your company coverage with an individual policy.

6. I'm too young to worry about disability insurance

According to the National Association of Insurance Commissioners, people in their 30's are three times more likely to become disabled than die. You may have enough money saved to pay the bills for a few months, but what will cover you down the road when the bills are piling up and you're not receiving a paycheck? 

Questions to Consider when Evaluating Disability Insurance Policies

Asking the following questions will help you evaluate policies when you are considering a purchase:

ý  How does the policy define a disability? Does it cover accidents, partial disabilities or only    after a total disability?

ý  If I become disabled, how long do I need to wait until benefits begin?

ý  How much does the policy pay? Is there a monthly maximum?

ý  How long will my payments continue?

ý  Is there an option to buy additional coverage at a later day, without evidence of insurability? 

How do I know when my disability insurance begins?
Knowing when your disability insurance policy started and knowing whether or not you have conditional coverage is important. Every policy is different and your start date will depend on your policy.

Some companies offer "conditional coverage." Conditional coverage will typically give you temporary disability insurance after your medical exam is administered and your fist premium payment is made. When your policy is officially approved the temporary conditional coverage will be replaced with your permanent disability insurance policy. Please contact me at any time on my contact Page for more information regarding your disability insurance policy to determine your policy's official start date.

What about Social Security benefits for Disability benefits?

Yes, you can collect Social Security benefits if you become disabled but are very difficult. In order to collect Social Security benefits due to a disability, your disability must be severe enough to prevent you from doing any kind of work, not just your current job. In addition, the disability would need to be classified as permanent.

Even if you are lucky enough to qualify for Social Security benefits, the benefits most likely will not be enough for you to maintain your current lifestyle or even a decent living.

What if I have current health problems, can I still obtain Disability Insurance?

Just because you have current health problems or a history of health problems does not mean you will be denied disability insurance coverage. Sometimes you may be able to get coverage with exclusions. For example, if you have a history of hip problems you may be able to get a policy that will cover everything except for a hip related disability.

You will need to answer honestly any information requested by the disability insurance company. In addition to questions about your current medical state and history, your medical records will be requested and a medical exam will be administered. The medical exam will consist of urine and blood samples along with height, weight, and blood pressure measurements.

Business Disability Insurance Tips

Check Associations: If you're a professional you might want to look to your industry's association for group plans. Many associations offer members various benefits including life and disability insurance. Review the cost and details of these plans.

Determine Disability Type: Not all disabilities will be covered under a policy. A computer programmer will be concerned with disabilities such as carpal tunnel syndrome. Which disabilities are covered under your plan?

Guaranteed Insurability: This is not a disability insurance option to ignore. If you want to add more insurance in the future without more medical qualifying, the guaranteed insurability option is best for you.

Non-cancelable Policy: If you want fixed premiums and benefits consider a non-cancelable policy.

This is the best option for locking in your costs and benefits but it does come with a higher price tag. Work with what you can afford.

Look at Financial Ratings: Before you make the final decision in selecting disability insurance, review the carriers. A.M. Best Company or Standard and Poor's provide ratings of the financial strength of insurance organizations. I will be glad to provide you with ratings.

Review Existing Policies: Review your life and mortgage insurance policies to explore the cost of adding a disability rider on the policy. A waiver of premium rider can help reduce your expenses in the event of a disability.

Business Overhead Policy: A business overhead expense (BOE) plan can be a welcomed addition to policy holders who not only want income covered but overhead such as: payroll, benefits, rent, and utilities as well. This option can help keep your business running while you recover from a disability.

Buying disability insurance for your small business shouldn't be based on premium price alone. Finding the best plan for your business will require a look at the options essential for your circumstances and budget, please contact me today by going to my contact page for more information on Disability insurance.

To find out more information, fill out my no obligation disability quote form, and I will be glad to contact you with any and all information you need. No pushy sales and your name and information will only be used for your health insurance quote and follow through obtaining the perfect fit plan for you.

Always feel free to contact me by e-mail or phone on my "Contact" page.