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DISABILITY INCOME INSURANCE

Disability  Insurance for Glendale, North Hollywood, Pasadena, Sherman Oaks, Northridge, Van Nuys & Surrounding California Areas

Disability Income Insurance

Disability Income Insurance (DI) pays benefits if you become too sick or hurt to work.

If you are like most people, you have insurance on your house, your car and other items of value. But, do you have insurance in case you are not able to work due to short or long term disability?  How will you generate income if you have unexpected disability?

Many people think that it is very expensive to protect their income.  However, it will probably cost you less than an average glass of coffee a day.

On average, people spend about $80.00 per month on coffee1, and with $56 a month, they can protect their income from an unexpected disability.

Anyone who depends on their income to pay the bills or maintain their lifestyle should consider disability income insurance protection.  DI insurance policy pays monthly “paycheck” to help pay everyday living expenses such as:

    • Mortgage
    • Groceries
    • Student loans
    • Medical bills (which typically increase as one becomes disabled)
    • Basically you choose how to spend your money.

What’s more costly?

 

Buying a DI policy and being protected against the unexpected.  Or Becoming too sick or hurt and no longer having an income.

 

10 Common Reasons People Give In Order Not To Buy DI Insurance

What do facts say?

 

10 People usually say Social Security will take care of me.

      • Fact: Currently average monthly benefit is only $1,191 for people who qualify.

2

    .
9 I expect to stay healthy – nothing will happen to me.

      • Fact: One in four of today’s 20 year olds will become disabled before reaching age 67.

3

      • .
8 It costs too much.

    Fact: The average annual payment is typically 1-3% of what you earn.
7 My financial needs change so fast. No policy will keep up with me.

    Fact: DI policies are usually flexible, and you can change it as needed.
6 I want to get a policy that keeps pace with my income; however, without medical underwriting.

    Fact: There are additional riders that will allow you to increase your coverage without providing evidence of medical insurability.
5 I already have coverage through my employer.

    Fact: Through employer you get group disability insurance which typically covers 60% of gross income, and benefits are usually taxable. The question is if you can afford more than 40% pay cut.
4 I do not plan to be totally disabled.

    Fact: With DI insurance, there are ways to protect your income in case of partial disability.
3 My family and friends will help me when needed.

    Fact: Are they in a position to support you? Do you want them to support you?
2 I can always buy coverage later.

    Fact: People usually do not get healthier as they age, and coverage will cost more.
1 I can rely on my savings.

    Fact: Even if you save 10-15% of your salary, 1 year of disability could very easily deplete many years of your savings.

 

1Accounting Principals Workonomix Survey, January 2012.

2Social Security Administration, January 2013.

3Social Security Administration, Fact Sheet, February 2013.