May is Disability Insurance Awareness Month and the campaign for 2023 is “Rethink Disabilities, Rethink Disability Insurance”. You may not have it because you think a disability will never happen to you. You cannot always tell if someone has a disability by looking at them. Chronic illness or invisible disabilities can take away your ability to go to work and earn a living. There’s a good chance that if you live long enough, you will most likely experience a disability in your lifetime.
Why is disability insurance important?
Disability insurance is important as it provides a portion of your income if you are unable to work. It is sometimes referred to as “income insurance”.
This year’s campaign’s effort is centered on working adults under the age of 40. Experts say that this age group disturbingly is unaware of the vulnerability to the loss of income over a period of time. We need to reach the young workers to make them aware of the expansion of disability and availability to working individuals.
The insurance industry comes together to show how important it is to review your circumstances to prepare for personal financial concerns a short-term or long-term disability may cause. This type of insurance works to protect your income, the asset we all rely on most.
Disability insurance has many policy solutions: benefits and riders. Trying to understand how to protect your income can be overwhelming for many people, specifically the first time you are introduced to disability insurance.
By getting educated on insurance they can now make informed decisions. Separate disability insurance into smaller sections of information so it is less overwhelming for you.
There’s a three step approach that can help you get started:
- Understand disability insurance plans. There are two main disability insurance options: non cancelable and guaranteed renewable plan benefits and riders on the policy cannot be changed or altered prior to the maturity date of the policy. Premiums never increase if paid on time. Premiums for this type of coverage usually cost more. Guaranteed renewable plans are lower in cost. Benefits/riders cannot be changed or altered prior to the maturity date of policy. However, premiums are subject to rate increases. Purchasing in your younger years may mean you face a greater risk of potential premium increase.
- Pick a definition of disability. The definition of disability determines whether policy benefits are payable in a specific instance. It’s important to understand how disability is defined in the policy you are considering. When you understand the definition, you will want to determine when benefits begin and how long they’ll last. Elimination periods determine when benefits begin.
- Adding optional riders increases and customize your disability insurance coverages. Riders vary per insurance carrier and it is important to understand what’s available so you can determine which one is best suited for your needs. One that you should highly consider is a residual rider. It pays a benefit in the event of a partial disability. The basic disability insurance policy pays if you’re unable to work due to illness or injury.
If you would like to learn more about disability insurance or look at your options, reach out and let’s schedule a time to mee at This email address is being protected from spambots. You need JavaScript enabled to view it. or call at 717-790-2171.
