Disability Insurance

Disability Insurance is Income Protection

Your greatest asset is your ability to earn a living. Think about it — what would become of you and your family if you suddenly became disabled and were no longer able to work? Disability income insurance can play a crucial role in helping you manage your financial needs if a disabling illness or injury occurs.

When it comes to insurance, we have car insurance to protect our vehicles, homeowners insurance to protect our homes, and life insurance to help provide for the ones we love, but when it comes to protecting our income in the event that we get sick or injured and can’t work, many of us just don’t have the proper income protection in place.

Disability causes nearly 50% of mortgage foreclosures and unexpected illnesses, and injuries cause 350,000 personal bankruptcies each year. Cancer is the leading cause of long-term absence from work (more than 90 days) for working-age Americans.

Common Disability Myths and Misconceptions

“Disability? It’s not going to happen to me.”

  • The odds are 3 in10 that a worker entering the workforce today will become disabled sometime before retiring.
  • A disabling accident occurs every 2 seconds in the US
  • There are over 50 million people in the US classified as disabled, and the numbers are rising

“If I do become disabled, it won’t last long.”

  • The average disability actually lasts 2.5 years
  • Before retiring, a disability will keep 1 in 5 workers out of work for at least a year
  • 1 out of 7 workers can expect to miss work for more than 5 years

“I think I’m covered at work?”

Most large employers provide some form of sick pay and long term disability benefits to their employees. That’s not the case for most small employers where few offer disability benefits. More employers are offering their employees the opportunity to buy disability insurance at the workplace, but most employees don’t elect the coverage –“it’s not going to happen to me”. Many employees also mistakenly think their medical insurance covers lost wages, it doesn’t. It’s best to get the facts from your employer about what benefits are available and what is covered.

“Workers’ compensation should cover me in most situations.”

This is unlikely because over 90% of disabling accidents and illnesses are not work related. Workers’ compensation does not cover the vast majority of disabilities.

“I have Social Security – that should be enough.”

Social Security Disability Insurance (SSDI) in a very important benefit for over 150 million US workers. Close to 7 million workers are currently collecting monthly disability payments from the program. Almost half are under age 50. But, SSDI may not be adequate for many workers: the average monthly benefit is $978, and less than half of the workers who apply for SSDI are approved.

“I have enough savings and investments.”

We all wish that was true, but for most working Americans that’s just not the case. 70% do not have enough savings to meet short-term emergencies, and the average household savings rate is negative, the first time since 1933. Two-thirds of American families live paycheck to paycheck and the average household credit card debt is $9,300. Most people simply can’t afford to be disabled.

Disability causes nearly 50% of mortgage foreclosures and unexpected illnesses and injuries cause 350,000 personal bankruptcies each year. Cancer is the leading cause of long-term absence from work (more than 90 days) for working-age Americans.

Why Johnson Financial Group Should Be Your Disability Insurance Broker

Not all disability carriers are the same. Some have better pricing for certain occupations and income classes than others. In addition, there are many variables with every disability policy, such as riders and specific definitions that can add much value, and much cost, to your policy. You need a knowledgeable representative who will work on your behalf, shopping for you from among the many disability insurance companies out there, to get you exactly what you want out of a disability policy.

It pays to have a broker who is a disability insurance expert, who has relationships with the most carriers, who can speak in terms that are easy to understand, and who will work hard for you to get you the best value. That expert is us. Johnson Financial Group has many years of experience finding the disability policy with the desired benefits at the best possible price for our clients. Give us a call at 443-807-7311, or email us to discuss your particular situation.

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