Individual Disability Income
Individual disability income insurance is designed to protect your most important asset, your income! Individuals who are self-employed face the possibility of “loss of income” due to an unexpected illness or accident.
Individual disability income (DI) insurance provides a replacement of a PERCENTAGE of that income. Proof of income (a copy of the most recent tax return) is required when applying for this coverage.
It is very important, when evaluating and/or purchasing a DI policy, to understand what the definitions and accompanying benefit levels are. A professional insurance broker can help answer your questions.
- Optional base benefit increase
- Cost of living adjustments (COLA)
- Own occupation coverage
- Any occupation coverage
- Partial disability benefits
- Your choice of elimination periods
- Your choice of duration of benefits
Disability Statistics According to the National Association of Insurance Commissioners (NAIC):
- A male U.S. worker at age 35 faces a one-in-five chance of a disability taking him off his job for 90 days or longer.
- Before a 35-year-old woman reaches retirement age, she faces a nearly one-in-three risk of a disability lasting at least 90 days.
- The risk of a long-term disability during a worker’s career is greater than the risk of premature death. Yet most workers would never think of going without life insurance protection for their families.
The most common causes of long-term disability are:
- Injuries to the muscles, bones, or joints (27%)
- Heart and blood vessel problems (13%)
- Spinal system diseases (12%)
- Cancers (10%)
- Injuries and poisonings (9%)
- Mental disorders (6%)
(JHA, Inc., 2006 Risk Management Study)