May is Disability Insurance Awareness Month (DIAM)

Posted in Life Insurance

May 6th, 2010

Set for Life Insurance, a disability insurance brokerage, is encouraging working professionals to protect their income with individual disability. While many people don’t think consider disability insurance among the top types of life insurance to purchase, it is something to consider as it could help you maintain your lifestyle if you were seriously injured or hospitalized.

Disabilities Can Bring Hardship to Families

Many people don’t think about the hardships that families suffer when a breadwinner is no longer able to offer a stable income. But according to a recent Life and Health Insurance Foundation for Education (LIFE) survey, nearly 50 percent of working Americans would not be able to cover their living expenses for one after a disability if they were unable to work.

Another 25 percent of those surveyed said that they would face financial problems immediately.

These staggering stats show that only 25 percent of the population feels comfortable enough with their current savings to manage their expenses for more than a month if they were suddenly disabled. It’s for this reason that considering this specific type of life insurance is something to do sooner than later.

Tips for Disability Insurance Awareness Month

To honor DIAM, Set for Life Insurance has offered some tips to help you get your hands on the right disability insurance:

• Determine the amount of insurance you need: Simply calculate how much income you would need on a monthly basis to cover your expenses.
• Work with an experience broker: Because disability insurance can be complicated, it’s important to work with someone who specializes in this type of insurance.
• Make sure you understand the definition of disability: Different companies may define disability differently and therefore could result in you not getting the coverage you need. So take time to read the policy to make sure that it mentions the most comprehensive definition, “own occupation,” which means that benefits will be paid if you cannot work in your profession. This would make sure you’re covered if you can’t work in your profession but can work in a different one.
• Comparison shop: If you find coverage that looks great on your first try, don’t stop there. By comparison shopping for rates, you increase your chances of find the best coverage at the best price.
• Look for discounts: Because disability life insurance is expensive, you could expect to pay 1-3 percent of your income to protect about 75 percent of your take home pay. Because it can be so costly, it’s a good idea to look for group discounts and other types to help cut the costs some.

Being aware of the options available to you is the first step to protecting your income in the event that you’re disabled. The next step is taking advantage of those options so that you if the day comes, you’ll know your financial well-being will be maintained.