Why should I purchase disability insurance now?

As with most types of insurance, the older you get the more expensive the coverage will become. Statistically you may be more likely to become disabled, as you get older. It is not guaranteed that you can be insured and as you increase in age; this will affect your ability to acquire a policy. Most importantly an accident or debilitating illness could strike at any time.

Did you know....

* About one in seven people between the ages of 35-65 can expect to become disabled for five years or longer.
* At age 30, the likelihood of a long-term disability is 1 in 3.
* More people lose their homes through disability than through fire or death.
* Heart disease and back problems are the two most common causes of disability.
* Government programs may provide disability benefits, but only if you meet a strict definition of disability.

How much coverage should I consider?

You should consider obtaining enough coverage to maintain the present lifestyle your family has. This means taking into account rent or mortgage payment, food, automobiles and other monthly expenses. You should be aware that income from Social Security benefits or employer related plans most likely would not come close to covering your expenses. Typical policies range from 60 to 70 percent of pre-tax income.

The table below calculates what your potential earnings may be up to age 50. Thus if you were to become disabled at age 35, and your monthly income was $3,000 per month, you would face a lifetime loss of $1,460,451.00 in wages.

Current Monthly Income
Age	$2,000	$3,000	$4,000	$5,000	$7,000	$10,000	$15,000
25	1,449,648	2,174,471	2,899,295	3,624,119	5,073,767	7,248,238	10,872,357
30	1,199,867	1,799,801	2,399,735	2,999,669	4,199,563	5,999,337	8,999,006
35	973,634	1,460,451	1,947,268	2,434,085	3,407,719	4,868,17	7,303,254
40	768,727	1,153,091	1,537,454	1,921,818	2,690,545	3,843,636	5,765,454
45	583,137	874,705	1,166,274	1,457,842	2,040,979	2,915,684	4,373,527
50	415,042	622,563	830,084	1,037,605	1,452,647	2,075,210	3,112,815

How long do plans pay a benefit?

There are many different plans with different options on this. The best plan would be one that will replace the lost income until you are 65 years of age. Any other will not meet the demands of your financial obligations.

What is the definition of disabled?

This will be a critical element to any policy that you purchase and with each policy the definitions will vary.

Unable to Continue in Your Present Occupation
You should consider a plan that defines "disabled" as being unable to continue in your present occupation. Most workers have obtained a skill that pays them at a salary reflective of that. A good policy is going to replace the income that you would have lost if you are no longer capable of that earning power.

Unable to Perform "Any Occupation"
There are plans that call for you to be unable to perform, "any occupation". These should be avoided, as they are not reflective of your loss.

What is an Elimination Period?

An elimination period is similar to the deductible on an auto policy. It will be the amount of time, generally quantified in a number of days, where you will have to wait until benefits are paid. As in an auto policy this will have a direct effect on the cost of your premiums.

A typical Elimination period would be approximately 90 days. This means that in order to be protected, you would need to have your own financial resources to last 90 days without any income.