Do you have Disability Insurance to protect your income if you get sick or hurt and can't work???

If you die from cancer.... which comes first? Do you die first - or get SICK first? Get sick first and die, second, right? So doesn't it make sense to insure what happens FIRST? Doctors' job is to save you and with modern medical technology, they are really good at it and often succeed in saving you, which means your life insurance will not pay! But just because you "survive" doesn't mean you can make a LIVING. Disability Insurance addresses illness and injury and should come FIRST. Life Insurance should come SECOND. 

Disability Awareness, Long Term Disability Claims Review, 2014  

National Safety Council, Injury Facts, 2012 Edition 

National Safety Council, Injury Facts, 2010 Edition 

Illness and Injury as Contributors to Bankruptcy, Health Affairs, February 2, 2005 

National Underwriter, 2002 

Council for Disability Awareness 

Disability Insurance is Income Protection. It's "paycheck protection." It protects your cash flow. As a W2 employee, about 60% your earned income and up to about 80% if you are a business owner, can be protected, tax-free if you get sick or hurt and are unable to work, whether it's on a total, partial, or catastrophic on or off the job.  

Being "disabled," simply means being unable to do some or all of the important duties of your occupation or a line of work that you could be reasonably expected to do based on your knowledge, training and experience. Some policies are very specific about protecting YOUR actual duties and job title and description.  

Protecting your income with disability insurance is even MORE IMPORTANT than life insurance. WHY?......Because modern medical technology is so effective and keeping you alive, you are TWICE as likely to SURVIVE an accident or illness than to die. But just because you "live" doesn't mean you can make a "living."  

Financial planning and risk management should use "triage," the way it is used in emergency medicine, treating the most serious urgent things first. Protecting your income should come FIRST, before all else. Without your income, you have NOTHING. Name ONE person you know who DIED and then became "disabled" afterwards. Impossible, right? This is not what happens. Protecting your income with disability insurance should come BEFORE life insurance.

Any number of illnesses or accidents

can keep you from working. 

• Spine and back injuries
• Muscular disorders
• Skeletal disorders
• Joint disorders
• Torn ligaments or tendons
• Auto Immune Disease
• Rheumatoid Arthritis 
• Lupus
• Celiac Disease
• Multiple Sclerosis
• Polymyalgia Rheumatica
• Ankylosing Spondylitis
• Migraine headaches
• Neurological disorders
• Seizures
• Epilepsy
• Brain damage
• Heart attacks
• Cancer
• Melanoma
• Tumors
• Strokes
• Blood clots
• Diabetes complications
• Muscular Dystrophy 
• Lou Gehrig's Disease (ALS)
• Parkinson's
• Aneurysms
• Embolisms
• Vascular disorders
• Vasculitis
• Falling off roofs & ladders
• Falling down stairs
• Slipping on slick surfaces
• Tripping and stumbling
• Car accidents
• Hit and run & DWI
• Motorcycle accidents
• 4-wheeler accidents
• Snowmobile accidents
• Boating accidents
• Watercraft accidents
• Water skiing accidents
• Gymnastics injuries
• Sports injuries
• Bicycle accidents
• Snow Skiing accidents
• Snowboarding accidents
• Surfing accidents
• Roller blade accidents
• Skate board accidents
• Hiking accidents
• Running accidents
• Trampoline accidents
• Cuts & lacerations
• Conventional Burns
• Chemical Burns
• Chemical exposures
• Wood cutting accidents
• Industrial accidents
• Carpentry, construction, woodworking, metal working, welding accidents
• Overdoing it in the yard
• Poisoning
• Allergic reactions
• Bacterial infections
• Pregnancy complications
• Hearing problems
• Speech problems
• Eyesight problems
• Mental depression, stress and anxiety issues
• Carpal Tunnel Syndrome

"Association" or Group Discounts" 

Quality carriers offer special discounts up to 20% to professional associations and groups of 3 or more insureds at the same practice help save you money. 

"Student Loan Repayment Riders" 

Student loan debt in the US is an estimated $1.31 Trillion. As a doctor, dentist or surgeon or other medical professional, a huge weight and concern can be lifted knowing your student loans will get paid. With the right quality carrier, you are protected whether you have a total OR partial disability.

"Own Occupation Definitions" 

Means you are considered "disabled" when you are unable to perform YOUR occupational duties, Vs simply being unable to perform ANY occupation, as with social security. True "Own Occ" policies can also allow you to "double dip" by continuing to keep you on claim, paying you a full benefit - EVEN if you are working in another occupation different than your normal "own occupation." For example, instead of being a surgeon, no you are teaching classes.

"Non-Cancellable Contracts" 

Means your premiums are guaranteed never to go up and will always remain level. 

"Guaranteed Renewable Contracts" 

Means your coverage can never be cancelled as long as you make your premium payments.

"Non-Disabled Injury Benefit Riders" 

Are awesome and you WILL use them. Often, people get "injured," with a chipped tooth, or sprained ankle, or cut finger, but they are NOT necessarily "disabled" and unable to work. These riders pay you 100% of the GROSS bill by your doctor to your medical insurance carrier up to $3,000 per incident, depending on the policy. For example, if your treatment facility sent a bill to Premera or Lifewise 2,900, they can send you the full $2,900 - NOT just your co-pay or deductible; it is irrelevant. 

"Partial and Residual Riders" 

Means you are covered even if you are only partially disabled, with top companies this can be as low as only 15% to be on claim. Most/many disabilities are partial and not catastrophic or permanent and total.

"Recovery Benefit Riders" 

Continue to provide you a portion of your disability benefit if your income is still down, even though you are 100% physically recovered. For example, if you are an attorney, physician or veterinarian who is recovered and back to work, but still showing a loss of income of 80% because your clients moved on, you can still get 80% of your DI benefits until your income is fully recovered to where it was.

"Presumptive Disability Riders" 

Means your elimination (waiting) period is waived - you go on claim immediately AND you can continue to work in your occupation or any occupation of your choice while STILL being on claim simultaneously, "Double Dipping" IF you lose your sight in both eyes, hearing in both ears, speech, or the loss of any two limbs. For example, if you lose the use of your legs and are confined to a wheel chair but you can still work, you can be on full claim while still earning an income.

"Future Increase Option Riders" 

Allow you to increase your disability income protection in the future when you have an increase in earned income WITHOUT any new medical underwriting; your original good health at the time of policy issue is "grandfathered" and protected. 

"Good Health Riders" 

Means the longer you go without any claims, the lower your elimination (waiting) period becomes.

"COBRA Riders" 

Help to cover your medical premiums if you become totally disabled and get let go from your job.

"Re-training Riders" 

Money for tuition and books so you can learn a new field and get on with your life.

"Home Modification Riders" 

Cover construction costs to modify your home, like lowering counter tops, widening doorways, putting ramps on the porch and adding handles in the bathroom along with making the shower more accessible.

"Return of Premium Riders" (ROP)

Refund up to 100% of all your premiums paid at the end of your policy, usually age 65 or 67, minus any claims along the way. It's like getting a refund. It's protection and coverage if you need it - all your money back if you don't! 

"Non-Integrated with Social Security" 

Means your benefits will not be reduced, even if you are being paid by either Social Security or Worker's Comp (L&I). 

"Lump Sum Policies" 

Unlike normal policies that pay a monthly benefit, these policies protect one full year's income, in a tax-free lump sum, similar to term life insurance, up to a maximum of typically $100,000, usually right after about only 30 days, provided your doctor says you are expected to be totally disabled for at least 12 months. It's a huge lump sum infusion of cash when you need it most and helps while you are satisfying an elimination (waiting) period. 

What if disability insurance didn't exist? Or what if you simply decided to go without it and "self-insure?" Or what if you could not medically qualify for a policy? What are your alternatives? Let's see how viable they really are....

• "Savings - Self-Insure" 

If you saved 10% of everything you ever made each year, solely as an emergency fund, it would only take ONE year to wipe out 10 years of savings! If YOU had no income, how long could you make it on your savings? Take your current savings and divide it by your monthly nut. You SHOULD have one full year's worth of living expenses in the bank at all times, 6 months as an absolute minimum. It should really be emphasized this savings  is truly for emergencies only, not saving up for a new car, or a vacation or a down payment on a primary or vacation home or putting money into retirement. Who do you know who TRULY puts away 10% of their income, religiously, every single year, solely for emergencies? No one, right? 

• "Selling Investments - Liquidating Retirement Accounts

Will you be forced to sell or liquidate your assets at a loss? When you are desperate and in hurry to create CASH you never get top-dollar or the best price

• "Social Security"

The average length of time for SS to hear your case is about one and a half years. On average, 70% of all applications are turned down. The definition of being disabled is extremely strict and rigid. It must be permanent and total, and or likely to result in death and you must be unable to do ANY occupation; it does NOT protect YOUR occupation. If you can be a Walmart greeter or say "would you like to supersize that" you are not disabled. BTW.... Did you know if you receive money from a "GoFundMe" account, your Social Security can be reduced? 

• "L&I Worker's Comp"

This only covers you and your employees (as required by law) IF or they have an accident while ON the job. It does not cover illnesses or anything OFF the job. FYI - 90% of all disabilities occur OFF the job and the majority are from illnesses, not accidents. MOST business owners do not elect coverage and are therefore totally unprotected.  

• "My spouse still has a job"

Let's face it - when people are sick or injured, and are in pain, especially over a long time, they get cranky and irritable. Will your marriage suffer? Often only your spouses income alone will not be enough to cover all your bills; most people's current lifestyle depends on both incomes. What if your spouse also has to take time off from THEIR job, reducing or eliminating their income to take care of YOU at home, bathing, eating, dressing, in addition to driving you to and from doctors and physical therapy appointments? All this, plus still having to run the household and taking care of your children is a lot to ask. 

• "I already have group coverage at work" 

Even if you have coverage through your job or employer, often this is very generic, and cookie cutter and YOU do not OWN the policy or have any control over it whatsoever. The coverage can be altered, modified, or deleted entirely at the discretion of the employer. If you get laid off or terminated or resign, you most likely will lose your coverage. What if your health has deteriorated and you are no longer insurable and can't medically qualify to obtain new coverage?

• "I have access to an association plan like the  "AMA"

You may in fact have access to a professional trust association like the "American Medical Association," (AMA) or the "American Veterinary Medical Association," (AVMA) but have you read and do you fully understand the fine print? Are you aware of all the caveats and important clauses? There are many of them and you don't want to find out at claim time you don't really have what you thought you had. PRIVATE, independently owned, individual disability insurance through an insurance company will always provide better, more solid protection with LOTS of guarantees. 

Critical Planning - But Often Overlooked

Disability insurance coverage and peace-of-mind if you need it - all your money back if you don't.

Disability Buy/Out Insurance - Key for Buy/Sell Partnership Agreements - but often missing.

Important - But Often Overlooked 

Contract Provisions and Language are Key

Income Protection if you need it - All your money back if you don't

Never take your ability to qualify for life and disability insurance for granted