Disability Insurance
When assessing your assets, you may typically consider tangible possessions like your home, car, and retirement savings. However, what about your capacity to earn a livelihood? At RFG Coverage, we recognize that one of your most valuable assets isn't something you can physically grasp; it's your ability to work. For many Americans, sustaining their monthly financial commitments would be challenging, if not impossible, in the event of an injury or illness preventing them from working.
Disability income insurance serves as a vital financial safeguard, intended to replace a significant portion of your income if you're unable to work due to illness or injury. Often referred to as "paycheck protection," disability insurance, alongside life insurance, provides essential coverage to ensure your family can maintain their home and other valuable assets should the unexpected occur.
Why Do I Need Disability Insurance?
According to the U.S. Social Security Administration, one in five Americans (56 million) currently live with a physical or mental disability, and it's estimated that one in four 20-year-olds will become disabled before retirement age. Without robust disability insurance, your family faces significant financial risk, particularly if you contribute to household bills or a mortgage. Relying solely on Social Security Disability benefits may not suffice, as qualifying is challenging due to strict eligibility criteria. Unlike Social Security Disability, disability insurance obtained through an insurance professional often employs an "own occupation" definition of disability, making it easier to prove disability.
How Does Disability Insurance Work?
Similar to other insurance policies, acquiring disability income insurance entails submitting an application and maintaining regular premium payments to keep the policy active. Disability income insurance can be obtained either as a standalone policy or as an additional endorsement to your life insurance policy.
In the event of disability, the policy outlines an "elimination period" before benefits commence. Following this period, if you remain disabled and unable to work, the policy provides benefits as specified for the designated duration. These monthly disability income payments aim to supplement your income during periods of disability, aiding in covering expenses like your mortgage and other bills.
Choose RFG For Disability Insurance
The key advantage of disability insurance is its ability to offer paycheck protection by replacing a substantial portion of your income in the event of disability. This ensures that your family can maintain their current lifestyle, with ongoing mortgage or rent payments being covered regardless of your ability to work.
Although you may have some disability insurance provided by your employer, obtaining separate disability coverage offers peace of mind, ensuring continuous coverage even if you change jobs and lose your current employee benefits. Additionally, having disability insurance helps you avoid the challenges and delays associated with relying solely on Social Security Disability benefits.To delve deeper into the possibilities and initiate insurance quotes safeguarding what matters most to you, connect with us to commence collaboration with an RFG Coverage Agent today.
Frequently Asked Questions
Q: What are the advantages of Disability Insurance?
One major benefit of disability insurance is the paycheck protection it offers if you become disabled. You can feel safe knowing that your family will be able to continue paying the rent or mortgage even if you are out of work. Additionally, having this insurance on hand can be useful even if you get disability through your employer. When you purchase your own policy, you don’t have to worry about suddenly losing coverage if you leave your current employer and get a new job. And, as discussed above, buying a disability insurance policy can help you avoid the frustration and delays that can come with relying on Social Security Disability, only to find out that you are not actually disabled in the eyes of the Social Security Administration.
Q: Can I afford Disability Insurance?
Purchasing a private disability income insurance policy, or adding disability coverage to a life insurance policy, is surprisingly affordable for most people. With the ability to choose from many carriers and products, you can tailor your policy to meet your budget and needs by adjusting the amount of coverage, the length of time payments would continue after a disability, the elimination period and other optional policy features and benefits. Because disability insurance is a health insurance product designed to protect your income, the amount you will pay for coverage will be based on your health and lifestyle, as well as your occupation and income. One of the biggest benefits of universal life insurance is the built-in flexibility when it comes to your premiums. If you experience a temporary financial hardship after your policy has been in force for a certain length of time and have sufficient cash value inside your policy, you may be able to rely on that cash value temporarily to help you keep the policy in force until you can afford to resume the full premium amount again.
Q: Do I qualify for Disability Insurance? / What types of disabilities are covered?
All insurance carriers and disability policies are a little different, but qualifying for coverage may be easier than you think. Normally, there is no requirement for a physical exam. Your policy will explain how "disability" is defined, and whether there are any exclusions to coverage. In general, private disability income insurance policies say that you are considered "disabled" if you are no longer able to work in your current occupation because of your physical or mental condition.
Q: When should I buy Disability Insurance?
The best time to buy disability insurance is now, while you're healthy. Don't wait until your next big bonus at work to purchase coverage; many policies can be customized to include cost-of-living adjustments, so your policy benefits will rise with your income over the years.
