What is disability insurance?
Your everyday life and future plans could quickly be affected if you experience an income-interrupting illness or injury and become unable to work. Many assume there is already a fallback plan to protect their income, but often discover too late that may not be the case.
Disability income insurance (DI) can help by providing a monthly benefit you can use to pay your basic expenses, such as your mortgage, utilities and groceries, in the event of a covered disability.
Your income is one of your most valuable assets. It allows you to maintain your standard of living, pay bills, save for the future and enjoy life’s simple pleasures. In short, your income provides the foundation for life as you know it.
Have you considered what would happen if you couldn't work to earn your income?
Understanding DI is as Simple as 1-2-3
Many people are unfamiliar with DI and don't know where to start when exploring a policy that will fit their needs. Terms such as "benefit period" and "elimination period" can be intimidating at first, but answering these 3 questions can help make it easier to understand your DI options and will assist you and your agent to design the right DI plan for you:
How much do you need to cover your basic monthly expenses?
This is your "benefit amount."
Disability benefits are designed to replace a percentage of your income if the unexpected
happens. You may be eligible for DI if you are unable to work and are losing wages because of
your own non-work-related illness, injury, or pregnancy.
How long might you need DI benefits to last?
This is your "benefit period."
Disability insurance (DI) policies typically offer a range of benefit periods, from as short as two
years to a length that extends until the insured reaches age 67. By contrast, a policy with a twoyear benefit period will only cover lost income for two years.
How long could you go without a paycheck?
This is your "elimination Period“
A disability insurance elimination period refers to how long you have to wait
before the insurer will pay benefits.