Disability Income Insurance

“It was summer vacation, and I took my family up to our cabin in the mountains. I figured I’d do some work on it while the kids went to the lake. I was up on a ladder, cleaning the gutter, when I started feeling lightheaded. It only lasted a second, but it was enough to make me lose my balance and I fell. Right onto the rock steps that lead up the side of the cabin. I could barely move.

I had what they called a burst fracture, where pieces of vertebrae actually broke off and embedded themselves in the tissue around my spinal cord. Not fun for anyone, but since I’m a landscaper, it also meant I couldn’t work. If I had a desk job or something, maybe I could have managed it, but that wasn’t in the cards.

My wife reminded me that I had a disability policy – I didn’t even remember, it had been so long ago. The money started coming as soon as my 30-day waiting period passed. It sure felt good to see that cash in my checking account. I really feel like that money saved us. What with inflation making everything cost so much, my savings wouldn't have gone very far.” –Darryl P.

In financial terms, a “hedge” is a strategy used to balance risk. Because inflation is such a problem right now, the best hedge is something that protects your money. But where does that money come from? It comes from your ability to work. As costs continue to rise, your income is more important than ever. And insuring that income is the smart way to hedge against the dangers of inflation as well as a disabling illness or injury.

It only takes a few minutes to see how little it could cost to insure your income. You already insure your health, your car, your home, your travel, and your pets. Why not protect the one thing that makes all of them possible: your paycheck! Take the sting out of inflation by ensuring that your paycheck is protected. Give us a few minutes and we’ll help you insure your income so you can focus on what matters most: your career, your free time, and your loved ones.

What happens if I never get disabled?

That’s a good thing, right? But if you’re worried about paying for coverage you might not use, consider adding Assurity's return of premium rider. This way, if you never become disabled, you’ll get your money back when you reach age 67 or pass away. You’ll still get your money back even if you cancel the policy or let it lapse.

I tell my clients to think about disability insurance the same way they think about health or auto insurance. You don’t want to have to use it…because that means something bad probably happened. But having that coverage gives you peace of mind whether or not you ever need it.

What if I already have coverage through work?

It's a good idea to check the details of that policy. Oftentimes, work policies don’t pay much, have long waiting periods, or only cover accidents that happen at the workplace. For example, let’s say that policy has a 90-day waiting period. Do you have 3 months’ worth of living expenses for the whole family saved up as cash? If not, that policy’s not going to be able to support you very well. You may need supplemental or replacement coverage to make sure you’re fully protected.

Does the policy pay 100% of my salary while I’m disabled?

No. Every state has its own law limiting how much your disability policy can pay you, as a way of incentivizing you to focus on recovery and getting back to work. This Assurity policy is capped at 60% of your pre-disability monthly income.

Is there a waiting period?

Yes, Assurity’s simplified issue policy has a waiting period (sometimes called the “elimination period”). In insurance-speak, this is the number of days you must be totally disabled to become eligible for benefits. The good news is that you can pick your waiting period. The goal here is to balance your financial need with the cost of the policy. For example, if you pick the shortest waiting period, your policy will cost more than if you pick the longest waiting period. Options include 30, 60, 90, or 180 days.

How long does this policy pay benefits?

That’s up to you. The maximum length of time your policy pays out (called the “benefit period") is an option you can customize to meet your needs. As with the waiting period, the shorter the benefit period, the less your policy will cost. Policies that pay for longer benefit periods will cost a little more. For this Assurity policy, your options include 6 months, 1 year, or 2 years.

Is this the same as a government disability payment?

No – this is a separate policy you own that is NOT dependent on government approval to receive benefits. However, if you do file a Social Security disability or Workers’ Comp claim and get approved, the amount you get from this policy will be reduced up to 50%. That’s required in order to comply with your state’s laws about the maximum amount you can receive while disabled.

There’s no better way to protect your family from the unintended financial consequences of a disability.

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