Disability Insurance

Reagan Stultz

What is disability insurance? Do I need it?

Disability Insurance protects your income in case you are unable to work due to injury. A disability could be either short term ( ex. a broken leg) or long term (ex. cancer) that results in a loss of work time. The short term usually lasts 3 months - 1 year and long term can span to age 65. With this type of insurance there is a time you must wait before the insurance kicks in, this is called the elimination period. The elimination period is like a deductible payed in time. The longer this period the lower you pay in premium. Once this period is over you will be given 50% - 75% of your gross income. If you do not have enough liquidity to cover a period of time without work, it is a good idea to have this insurance type.

What factors will affect the premium I pay?

  • Time you want coverage The longer the coverage the higher the premium.
  • Job if your job is more susceptible to injury the higher the premium.
  • Lifestyle If you are involved in dangerous activity your premiums will be higher.
  • Age The older a person is the higher the premium.