Disability Insurance – do you need it?

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We all carry insurance for many important things in our lives. Protecting the ones we love with health and life insurance, our property with home, ranch or business insurance, and even our smartphones with cell phone insurance. Some of us tend to overlook a critical factor that can affect our families, homes, businesses and our way of life. Disability Income Insurance or Income Protection Insurance is something to consider.

What is Disability Insurance?

Disability Insurance is insurance coverage that assists you should you become sick or injured for more than 90 days and cannot work. It is not just coverage for those that become disabled on the job by an accident or injury. What if you became ill with a chronic disease? Disability Insurance covers injury and illness that keeps you from working long-term. Accidents are not even the primary cause of disability claims. Cancer, back issues, heart attached and diabetes are common causes. Plans are customizable, but all require an elimination period. This is the amount of time you must wait before monthly payments begin. Disability Insurance also has a maximum time payout, often five years.

Disability Insurance through Social Security – isn’t that enough coverage?

Doesn’t Social Security offer coverage that is sufficient you ask? Yes, Social Security does offer Disability Insurance to American’s that cannot work long-term, but these benefits are often difficult to get and provide minimal coverage. On average, Disability Insurance payments from Social Security as of March 2013 are less than $1130 per month. The process of applying is complicated, and 65% of claims are denied. In addition, Social Security provided Disability Insurance benefits do not begin until you have been out of work for 12 months. Not many of us can go an entire year with no income, yet 69% of Americans don’t have additional Disability Insurance coverage.

Do you really need Disability Insurance?

According to the Social Security Administration, more than 1 in 4 twenty-year-olds entering the workforce will experience a disability of some sort lasting from 90 days or more before they retire. That is a significant amount. Lost wages can affect every aspect of your way of life. Many think of a rare freak accident causing disability and think, “that will never happen to me!” But how many of our family, friends, and neighbors are affected by illnesses that are debilitating? The average length of a Disability Insurance claim is three years. Could you and your family go three years without your income?

AIS in conjunction with Illinois Mutual have put together Disability Insurance options that are flexible and offer options to purchase more in the future. A 5% discount is extended exclusively to all Oklahoma Cattlemen Association members. Call on AIS with your questions and to discuss plan options. They are ready to help you plan for the future and protect your way of life, starting today. (913) 397-9400