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Now, more than ever, it’s important to make sure that you have the best disability coverage available. The statistics are alarming when it comes to disability, and as your insurance agency, we want to make sure you are protected.

Have you considered?

  • Medical issues contributed to 62% of all personal bankruptcies in the United States. It causes over 50% of all mortgage foreclosures, compared to 2% caused by death.1
  • A 20 year old has a 25%  chance of becoming disabled before reaching retirement age.2
  • Disability is more likely than death during one’s working years.3
  • A typical 35 year old American, who works an office job and leads a healthy lifestyle, has a greater than 20% chance of becoming disabled for more than three months during their working career.
  • The average length of disability for someone 35 or over is 82 months.5
  • The average Social Security Disability Insurance benefit is $1,130 a month? Is that enough for you family?6

What are the leading causes of disability?

  • 90% of disabilities in the United States are caused by illness rather than accidents.
  • Some of the leading conditions are musculoskeletal/connective tissue disorders, cancer, mental disorders, and cardio vascular/circulatory disorders.4

 What should you look for in a policy?

  • Is it Non-Cancellable and Guaranteed Renewable? This means as long as you pay the premiums the insurance company cannot cancel you and cannot increase your premium.
  • There is nothing more important in your policy than the definition of disability. It is imperative that you understand how your insurance company is going to define whether you are or are not disabled.
  • What limitations does your coverage have? Does it cover certain illnesses like mental illnesses and nervous-system related illnesses for only a limited amount of time? Does it remove not gainfully employed language?
  • What option benefits, also known as riders, does it have?
  • How much does it cost? Obviously, this is a consideration that’s important. Are you able to purchase a policy that has association discounts or other discounts built in?

Ultimately, what matters most is buying your disability policy through someone that you trust. It is important that you educate yourself on the basics and then turn to a professional who can guide you through the myriad of options and find a plan that best fits your needs. If you have questions about your disability policy or haven’t gotten around to getting one, give us a call. We spend time researching the marketplace so that we deliver on our motto of protecting South Carolina physicians- one member at a time.

by Jake Thompson
Jake.thompson@fulcrumrisksolutions.com
803.413.2888

References:

1 Health Affairs, The Policy Journal of the Health Sphere, February 2, 2005. Retrieved from: http://www.disabilitycanhappen.org/chances_disability/disability_stats.asp

2 www.socialsecurity.gov/dibplan

3 Weighted averages based on MetLife disability insurance sales applied to calculations from Milliman, Inc. on disability experience results or 1990-1999 from the Individual Disability Experience Committee of the Society of Actuaries.

4 Council for Disability Awareness, 2012

5 Council for Disability Awareness, 2010

6 U.S. Social Security Administration, 2012