Most of us depend on our income for our living. To earn that income, we have to be healthy. But accidents happen, and people do get sick. That’s when it’s important to have a good disability income policy.
What are your chances of becoming disabled for a period of more than 90 days before you reach the age of 65? And if your disability did last 90 days, what would the average length of your disability be? The following table shows your chances of being disabled more than 90 days, and the average duration of your disability if it does indeed exceed 90 days.
It Could Happen To You!
|
Your Age |
Chances of Being Disabled (past 90 days) |
Average Duration of Disability (past 90 days) |
|
25 |
58% |
1.2 years |
|
30 |
54% |
2.5 years |
|
35 |
50% |
2.8 years |
|
40 |
45% |
3.1 years |
|
45 |
40% |
3.2 years |
|
50 |
30% |
3.1 years |
|
55 |
25% |
2.6 years |
|
60 |
14% |
1.6 years |
Source: Commissioner’s IDA Morbidity and Commissioner’s SO Mortality Tables, Society of Actuaries.
Disability insurance is expensive but it can replace roughly two-thirds of your salary if you are sick or hurt and unable to work. If you buy the right policy, you could receive monthly benefits until you turn 65.
Generally, the younger you are, the cheaper disability insurance will be. Other cost factors are your occupation and the amount of coverage. The comprehensiveness of the policy is another important factor in determining the cost of coverage. The best policy is called own occupation – “own occ” in industry parlance – because it considers you disabled if you can’t do the specific job you did before.
There are few other cost considerations, including how fast the policy will start to pay out and how long you’ll receive benefits. A 90-day waiting period is often the best choice, and you’ll probably want benefits to continue to age 65.
Remember, a custom designed individual disability plan will provide you with guaranteed coverage and guaranteed premiums! Be sure to discuss the coverage you need with me.