Would you be able to pay your bills, the mortgage, and put food on the table without a source of income? Fifty percent of Americans couldn’t meet their living expenses after one month without a paycheck, according to a 2012 LIFE Disability Survey conducted by Kelton Research. Disability insurance protects income earners from the risk of becoming unable to work due to an injury or illness.
“After a disabling injury or illness, disability insurance pays a set percentage of one’s salary, not 100 percent,” said Jennifer Krog, Life & Related Account Executive at McGrath Insurance Group. “This usually averages around 40 to 60 percent of an individual’s salary which is, generally speaking, enough to survive on.”
Coverage can be purchased on an individual basis, with premiums based on age, health and income. Individual policies are medically underwritten through the use of health questionnaires and exams. There are three types of disability coverage for individuals:
- Accidental Disability: Income protection for those who are concerned with injury and are ineligible for accident and sickness coverage. Elimination, or waiting periods average 14 to 30 days.
- Short-term Disability: Mortgage and income protection with an elimination period of 30 days. Maximum coverage provided up to 90 days.
- Long-term Disability: Mortgage and income protection with an elimination period with a minimum of 90 days.
Coverage can be purchased through a worker’s union or by the employer, and is guaranteed without medical underwriting. Rates are based on age, size of the group, and industry. Coverage is not convertible, and the employer designs the plan available to employees.
For more information on disability insurance, contact McGrath Insurance Group at 800-342-3859 or visit www.mcgrathinsurance.com.
*This article is written for informational purposes only and should not be construed as providing legal advice.