| It is a wise person who realizes that their most valuable assets is not their car or a house or any of life's luxuries; not stocks, not bonds, nor other investments -- but the ability to earn an income |
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protects your most valuable asset, your earning ability, from illness or injury. When you can't work, it helps you keep a roof over your head and maintain your daily routine, knowing the bills will get paid. |
| Everything you have and everything you hope to have depends on your continued ability to work each day. In fact, it is that is the one asset that allows you to have all the others. |
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If you want to be sure that your income is adequately protected during a disability, you need a disability insurance protection plan |
Call us at Siler & Associates, Inc. for a complete disability income plan tune-up and comprehensive disability quotes. Our phone number is 303-467-2876.
- Specific Causes of Disabilities
- Odds of Death vs. Disability
- The Reality During a Disability
- Chances of a Long Term Disability
- Alternatives to Disability Insurance
- Basic Disability Insurance Odds
One of the most common misconceptions people have is that they would need to be a paraplegic in order to be disabled. Many people have the “If I can think, see and type on my computer then I can work” notion about disability insurance. In reality only 13% of disabilities are due to injuries. Illnesses comprise the other 87% and are what prevent you from working.* Illnesses do not care what you do for a living, and many times will disable those who are computer consultants, lawyers, physicians or plumbers in the same way.
| Impairment |
Impairment Total Percent of Disability** Claims |
| |
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| Back/Spine |
18.2% |
| Psychiatric & Emotional |
12.7% |
| Neurological |
11.3% |
| Extremities |
9.0% |
| Cardiovascular |
4.1% |
| Diabetes |
3.6% |
| Substance Abuse |
3.3% |
| Hearing Loss |
2.9% |
| Vision Loss |
2.6% |
| Blood Disorders |
2.6% |
| Cancer |
2.3% |
| Asthma |
1.7% |
| Other |
25.7% |
* National Institute on Disability and Rehabilitation Research, 1992
** Source HIAA (Health Insurance Association of America) Source Book of Health Insurance Data 1999-2000
There are two threats to your ability to earn an income – death and disability. We do not know when death will occur, but we know that it is inevitable. Disability on the other hand, isn’t a certainty. But what are the chances that you will be disabled before are 25?
Death vs. Disability between***
The Ages Shown
Age Death Disability
25 24.1% 34.8%
30 23.5% 33.1%
35 22.8% 31.3%
40 21.8% 29.1%
45 20.4% 26.3%
50 18.3% 22.6%
55 14.9% 17.6%
60 9.3% 10.6%
*** Source: 1985 CIDTA, male, 30 day elimination period, Occupation Class 5, and 1980 CSO (Central Statistics Office)
Your income is providing today’s basic necessities and luxuries as well as the foundation of your future plans. As long as you have the ability to earn an income you are able to gather and/or maintain your assets.
What would happen if a disability should strike? Your need for the basic necessities of life would continue. Plans for retirement, children’s education, travel, etc. would have to be put off, if not abandoned altogether. You would have to do without luxuries, yet you would still need to meet your obligations of fixed expenses: mortgage, vehicle payments and maintenance, and other bills.
Remember, . Once a sickness or injury occurs you can no longer get a personal disability income policy to provide the lost income you will suffer.
The 1985 Commissioner’s Disability Table provides some very good data on the probability of an individual suffering a long term disability and once disabled what the chances are of that disability lasting over five years.
The following table shows the percentage of people who can expect to suffer a long term disability that lasts longer than 90 days or more before they reach age 65.
Age Percentage Disabled
25 52% 1 out of 2
30 51% 1 out of 2
35 48% 4 out of 9
40 45% 4 out of 9
45 40% 2 out of 5
50 34% 1 out of 3
55 27% 1 out of 6
60 16% 1 out of 6
There is no reason to go without disability income insurance unless you are extremely wealthy and have no need to work except for pleasure.
If a disability of 90 days or more lasts two years, it will probably continue longer, even for life.
Age when Percentage still Percentage still
Disabled disabled after 2 disabled after 5
90 days years and 90 days years
25 63.5% 44.2%
35 69.7% 52.6%
45 73.6% 58.0%
55 77.6% 59.6%
It is a misconception that disabilities are short term in nature. There is a big chance that you are going to need disability income insurance during your working years. Some disabilities will last past age 65. We offer plans that provide benefits for varying lengths of time.
Is my most valuable asset as well protected as my other assets? Have you made sure that if you were disabled tomorrow and your income stopped that you would have an alternative source of income so that you would not have to worry how the bills were being paid? Do you have a Most alternatives to replacing lost income are halfway measures.
Qualifying for Social Security benefits is very difficult because the disability must prevent you from doing any kind of work -- not just your usual job. The definition of disability for social security states that one must be completely disabled with no hope of recovery for a period of at least one year or have a disability expected to result in death. If you think that you could get by on Social Security benefits, you may want to reconsider.
Worker’s Compensation only covers job related sickness and injury. In addition, these benefits are limited.
If you save just 5% of your income each year, a six-month disability would wipe out 10 years of savings, and when savings are gone your other assets would begin to dwindle as well. After your savings are depleted, would your family be able or willing to help you out? Even a bank wouldn’t want to give a loan to a disabled person with no income and no guaranteed prospect of being able to repay the loan.
If you have trouble living within your income now, have you considered how you would live if your income suddenly stopped?
As you can see from the chart below, one has the most to lose early in life. What it does not show is that odds are the person making $2,000 a month at age 25 would most likely increase his rate of pay as the years go by. Therefore the loss of income is even greater if a long term disability strikes.
| Age when disabled |
25 |
30 |
40 |
50 |
| Monthly Income |
$2,000 |
$4,000 |
$6,000 |
$8,000 |
| In one year you would lose |
$24,000 |
$48,000 |
$72,000 |
$96,000 |
| In two years you would lose |
$48,000 |
$96,000 |
$144,000 |
$192,000 |
| In five years you would lose |
$120,000 |
$240,000 |
$360,000 |
$480,000 |
| By age 65 you would have lost |
$960,000 |
$1,680,000 |
$1,800,000 |
$1,440,000 |
| Owning a disability income insurance plan should not be optional and should not be a decision you need to think about. |
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A disability income policy is necessary and is a foundation product. Every working person needs to make sure they are able to maintain their current lifestyle in the event of a long term disability. |
| Disability income insurance makes sure that if a sickness or injury prevents you from performing the material and substantial duties of your regular occupation, there will continue to be money coming in to pay your bills. |
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You can request a disability income insurance quote from our website. |
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