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INDIVIDUAL DISABILITY INSURANCE

 

Your most important asset is your ability to earn.  We all insure our automobiles, homes, bodies and valuable assets and we pay the premiums for these insurance policies with our ability to earn.  Without warning, an illness or injury can turn lives upside down.  Disability insurance can ease the difficulty of these events by helping to protect you against the resulting threats to your income, assets and lifestyle.  Consider that more than 50 percent of mortgage foreclosures in the U.S. today result from long term illness or injury - not from job loss or premature death.

Disability insurance is a type of insurance policy that pays monthly benefits when you become unable to work because of a disabling physical or mental reason. You may be able to buy it at work or you can purchase it on your own and pay monthly premiums.

There are numerous types of disability insurance, from bare-bones policies to those with options galore. Your individual coverage will determine when your benefits actually begin, how much you receive, the limitations on your coverage, and how long you can receive benefits.

There are two basic types of Disability insurance: Long Term Disability insurance covers you until age 65. This is what most people think of when they think of disability insurance. It is the most important type of disability insurance. No one should be without it.  Short Term Disability insurance typically covers you for six months to 2 years. This covers you for a shorter period of time and is great for accidents, illnesses and maternity.

Long Term Disability insurance is not really intended to cover a short-term injury or illness. If you rupture a disk in your back and are out of work for two months, it's not wise to draw on disability benefits because your future premiums may skyrocket. Instead, experts advise using your savings to live on for a couple months, even selling a mutual fund or stock or two if necessary, to cover a short-term illness. In some cases, your employer might pay sick-leave benefits or offer Group Short Term Disability insurance on a partially paid or voluntary bases.

Determining whether you need disability insurance is a personal choice. You must decide how much financial risk you are willing to assume should you suddenly find yourself unable to work for an extended period. How many months can you rely on your savings? How easy will it be for you to rebuild your nest egg for your retirement years? Can your spouse's income cover the lost salary?

Your income level also helps determine your need. In general, experts say, people who make less than $30,000 or $40,000 a year don't need it. Some insurance companies won't offer coverage for people with incomes below $20,000.

Severe disability - needing the help of others for daily living- is not uncommon among working age people. In fact, 5.1 million people between the ages of 18 and 64 are currently disabled.  Some insurance companies won't cover workers in certain dangerous professions no matter how high their income, such as pilots, miners, and police officers.

PCIS Has The Solution
Disability insurance can be custom-tailored to offer a full range of income protection solutions. Disability insurance contracts are not all the same. We have the expertise and experience to design the best disability insurance program for you and your family. Contact us and we will get to work finding you the most competitive policy that will help protect you, your family, and your assets in the event you become disabled.

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