Personal Individual Disability Insurance: NO, you probably don't have it on the job

Disability insurance is sometimes referred to as the missing piece in family planning. It is a type of insurance that replaces a percentage of your monthly income if you should become disabled for 90 days or more. article continued below >>

People often think they have disability insurance with their employers. In rare instances, disability income plans may be available from an employer for as long as two years. Beyond that, if the disability is "total," you can apply for social security disability and receive the same benefit that you would be entitled to if you were of retirement age. That amount is based on what you have paid in to Social Security and is always much less than your regular paycheck. Personal individual disability insurance will give you money to keep paying your bills.

Many disabled people are able to do "something," just not their regular job. Often, it is possible to retrain for a job that accommodates the disability. However, your employer is not likely to pay for this, and your family needs an income while you are re-training. Many disability income policies will replace your income while you train for a new job providing your job loss was caused by the disability.

If you are unable to return to any type of gainful employment, you will soon exhaust any sick leave or "long term" disability your employer may offer. It can take 2 to 4 years to begin receiving social security disability. By that time, your family could be homeless. Private disability insurance can fill the gap while you explore other options. And if you never receive social security disability, a private plan will pay until you reach 65 and are eligible for Social Security retirement.

Remember, if you are under 42 years old, your chances of becoming seriously disabled are four times greater than dying. Furthermore the average age of all disabilities lasting longer than three months is two years. Your disability could be caused by an accident or—even more likely today, a disease such as heart disease or diabetes.

Disability insurance is also called "Income Replacement Disability Insurance." You can activate your policy when you are unable to perform the duties of your regular job and expect to be disabled for at least 90 days. The amount you can collect is determined by your average salary over a three year period, on the percentage you choose via your premium, and on the danger classification of your job. You can choose to collect from 40% to 80% of your salary. The money comes directly to you and is tax free.

Contact a reputable agent who can explain his company's policies today. You want a policy that waives the premium when you have to use it and that is guaranteed renewable regardless of how many times you have to use it. You also want it to continue to age 65, if necessary, and to continue even after you qualify for social security disability. You can use our online service to get a quote now.

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