When we consider our most valuable assets, most of us think of physical things, such as our homes, cars, campers, etc. and so we insure these things. However, if you look at it from a different perspective, you realize that none of those things would be possible without your ability to earn income. The foundation of all of your assets is really your most important one: You.
Disability insurance pays a portion of your income if you can’t work for an extended period of time due to illness or injury and is the best way to protect your home and family if you become disabled. Unfortunately, most people don’t believe that they will become disabled but here are some sobering statistics:
This last statistic demonstrates the sad truth that most Americans are better prepared financially to die than to become disabled, although the chances are at least three to five times greater of a disability occurring.
Despite these facts, some people think that they don’t need disability insurance because they have savings. However, if you saved 10% of your income each year only one year of being totally disabled could completely wipe out 10 years of savings. Others believe that they can rely on Social Security Disability Insurance to provide an income if they are disabled, but it only applies to people who have worked at least 10 years and the average payment is $722 per month. Furthermore, the strict criteria of the program results in only 35% of applicants actually qualifying to receive benefits.
The simple truth is that if you are involved in a labor intensive job, own your own business or rely on a paycheck for income, disability insurance is the only way to protect your home and family.
There are two basic types of disability insurance: short term and long term. A short term policy typically replaces 60% to 70% of your base salary and the payout period is between a few months up to one year. There is often a short waiting period, usually 2 weeks, between the time you become disabled and the payments begin.
In contrast, long term disability insurance typically replaces 40% to 60% of your base salary. Benefits end when the disability ends but in cases where the disability continues, the benefits end after the number of years specified in the policy or at retirement age. The waiting period for benefit payments is typically 90 days from the start of the disability.
The challenge with disability insurance is that each insurance provider defines “disabled” differently. Also, some policies will pay benefits if you can’t work in any job that you could qualify for while others will pay if you can’t perform a job in your occupation. To make it more confusing, some policies pay for partial disability and others only pay if you can’t work at all.
There are four primary ways to obtain coverage:
Your family relies on your income to pay rent or mortgage payments, purchase food, clothes and other necessities, and provide a good life for all of you. If that income is lost due to disability, you are likely to lose your home as well, and the lifestyle you and your family enjoy, which is why you need coverage.
Purchasing disability insurance is tricky. You need to decide how much coverage makes sense, should you buy a policy for short term insurance, long term insurance or both? Then you have to review the policies and evaluate which will give you the most benefits for the premium payment. Or you could contact us. At Alliance, we help thousands of people just like you select the best disability coverage for their needs. Since we represent the best insurance companies in the state, we can offer you options that you can trust.
“I am happy in today’s world to be able to compliment someone, not everyone enjoys doing what they do as Lisa did. I am on disability, was in the insurance field years ago in the 70’s and then went into the medical field and finished as a clinical supervisor. I know what I expected of my staff and Lisa exceeded all expectations. We just found your site the other night but I can assure you as our needs come up for different things we WILL be calling ALLIANCE.”D. Clair – Florida
“Felicia was a wonderful agent and helpful at every time. I would highly recommend getting your insurance needs met here.”S. Miller – Jacksonville, FL
You were willing to take this bull by the horns and run with it when no one else was interested. You have no idea how HAPPY I am right now. I have been fighting this battle for over a month and you came through. You diffidently will be my first contact for any future insurance needs and I WILL refer my friends to you.”Dennis A. – Tampa
Alliance Insurance saved me hundreds on my Workers Comp, General Liability, Group Health and Commercial Auto and Insurance needs. Thanks Alliance. I will be recommending you to all my friends.Tory H. – Orlando
My Agent at Alliance Insurance shopped all the Auto and Home Insurance companies to see who gave me the best rate and plan. Alliance’s agents are knowledgeable and very polite. I will put all my insurance’s with Alliance. Thanks for the savings!”John H. – Jacksonville
Alliance Insurance is the place to shop for all your insurance needs. I packaged my home and auto together and saved over $300 a year. My agent shopped around and got me the best rate. I would recommend everyone to use Alliance Insurance for finding the best insurance rates.Mary S. – Tampa, FL
I just saved over $400 on my Homeowners Insurance Florida with Alliance Insurance. My agent was very helpful, got me discounts I did not even know about and shopped all the carriers to make sure I was getting the best deal. Thanks Alliance! I will recommend you to everyone.Joan P. – Orlando, FL
You all have access to the most companies and got us the best price on our coverage.Jay Johnston, Jacksonville, Fl