About Disability Insurance
When you think of your assets, you probably think of tangible things like your home, car and retirement account. But, what about your ability to earn a living? At Symmetry Financial Group, we believe one of your biggest assets isn't anything you can touch or feel; it's your ability to work. If you're like a majority of Americans, it would be difficult, if not impossible, to continue meeting your monthly obligations if you were to become injured or ill and could no longer work.
Disability income insurance is a type of insurance product designed to help replace a major portion of your income if you were unable to work because of an illness or injury. For this reason, many people think of it as “paycheck protection.” Along with life insurance, disability insurance can offer the protection you need to ensure your family doesn’t lose their home or other valuable assets if the unthinkable happens.
WHY DO I NEED DISABILITY INSURANCE?
Most people think they aren't at risk of becoming disabled. However, the facts about disabilities are sobering. According to the U.S. Social Security Administration, one in five Americans (56 million) is currently living with a physical or mental disability. And, more than one in four of today's 20-year olds will become disabled before reaching their retirement age!
Today, many households rely on two incomes to pay the mortgage and all of the household bills. Without a solid disability plan, your family could be at a significant risk.
Relying on Social Security Disability to protect you may not be enough. It's very difficult to qualify for Social Security Disability benefits. In part, that's because the Social Security Administration uses a strict definition of "disability" and requires that you be unable to work in any occupation you would otherwise be qualified for based on your education, job experience and training.
Disability insurance purchased through an insurance professional is different. Disability income insurance generally uses an "own occupation" definition of disability rather than the "any occupation" definition used by the Social Security Administration, so proving you have a disability is less onerous.
It's insurance coverage designed to be there to protect your income and your ability to meet your regular financial obligations if you weren't able to work.
HOW DOES DISABILITY INSURANCE WORK?
Because it's an insurance policy, you will need to apply for coverage and make regular premium payments to keep your policy in force.
In the event you were to become disabled, your policy would specify how long the "elimination period" would be before benefits begin. After that elimination period, if you were still disabled and unable to work, the policy would pay you the benefit amount specified in the policy, for the length of time specified in the policy.
Your monthly disability income insurance payments during periods of disability are not intended to entirely replace your income stream, but are designed to provide you with some replacement income during the period you are unable to work so you could continue paying your mortgage and other bills.
Disability income insurance can be purchased as a stand-alone policy, or as an added endorsement on your life insurance policy.