Statistically, it is three to six times more likely that your income will stop because of being too sick or hurt to work than being too dead to work. And yet disability insurance is often ignored in risk management. Of all forms of insurance, disability insurance has the highest probability of occurrence from ages 25-65. Yes, paying premiums will reduce your disposable income, but far better that than having your income stop and nothing coming in to take its place! When you are dead, it won’t matter if the income stops. If you are disabled, however, it matters a great deal to you and your family, too.
Do I Need Disability Insurance?
A simple test is to ask yourself if you would be able to make your house payment and all your bills if your income stopped for the next 90 days? If not, or if it would be a stretch, then you are a prime candidate for considering long-term disability insurance.
What is the Primary Cause of Long-Term Disability Claims?
Most people mistakenly believe that the major cause of disability is from an accident. The statistics rebut this notion and indicate that disability is usually caused by a gradual decline in health or by a degenerative condition. Still, if your income stops, it doesn’t matter “why?” – what matters is how you will cope. How much will you need and where will it come from – quickly?
If You Are a Professional, Do You Have a True “Own-Occupation” Contract?
A true “own-occupation” (“own occ”) contract means that even if you can work at some other type of employment, you will be deemed disabled if you cannot perform the primary duties of your occupation specified in the contract. Don’t make this mistake … many professionals think they have a true “own-occ” coverage because the marketing material and/or the proposal for their disability insurance mentioned that they were getting an “own-occ” contract. It is vitally important to look at the actual definition of total disability in your contract to determine whether you have true “own-occ” coverage.
Is the Amount of Income Replacement Sufficient In the Event of Your Disability?
Frequently, I find that clients have outgrown the disability contract’s monthly benefit. The benefit amount may have covered their salary when they initially bought the coverage, but often it is now too little. Often there is room for additional coverage because their income is now substantially higher, and expenses are greater today than when the contract was purchased.
You Can Get a 10% Discount on Disability Insurance if You Act Quickly
Rarely do I get to provide my clients with a discount in their premiums for insurance, but this is one of those rare occasions. A top-tiered disability insurance company has allowed advisors such as Wealth Legacy Group®, Inc. to give their clients a 10% discount on the purchase of disability insurance for a limited time. The 10% discount applies to all new purchases of disability and will apply for the duration of the contract. The contracts must be dated no later than January 31st with a deadline for submission no later than March 3, 2017 (back-dated to January 31st.) Because it will take some time to fill out all of the paperwork, please contact me immediately if you would like to discuss the possibility of purchasing disability insurance for you personally – to cover your business overhead – to fund your buy-sell agreement – or to fund your retirement plan in the event of your disability.
Saving money while also protecting the future. Sounds like a great “investment” to me …