Preparing for risk always begins with recognizing that there is one, and then calculating the chances that it will actually happen.  But, as an article that I read recently pointed out, “the odds of a disability are themselves odd.” 

Some sources will tell you that you have an 80% chance of suffering a disabling illness or injury in your lifetime.  Others put the chances closer to 50%, and still others as low as 30%.  The number you hear – the number you choose to believe – is what will make the biggest difference in how you choose to handle this particular risk.

I like to think of it this way:  if the weatherman says there’s a 100% chance of rain, you’ll grab an umbrella before you leave the house.  If he says the chance is 50%, you may or may not.  But the important thing is this:  you know that it does rain, once in a while, almost everywhere, and so at some point in your life you buy an umbrella.  Or several umbrellas. 

Whether the chances that you will suffer a disabling injury are 80%, or 50%, or 30%, you need disability insurance protection.  Because every year, in this country alone, 31 million people just like you get rained on.   Maybe it’s a passing sprinkle, like a sprained ankle; inconvenient, but something you can recover from.  Maybe it’s a thunderstorm, like a mild stroke; sudden, disrupting, but again, only temporary.  And maybe it’s a downpour that not only never stops, but gets worse as time goes on, like multiple sclerosis. 

Don’t let the fact that you get different numbers from different sources be the reason that you become complacent.  Accidents happen.  Illnesses do come.  And without disability income protection, you’re left not only disabled, but disabled without any income.  About a third of all U.S. employers provide disability insurance.  But, since that coverage is employer paid, the benefits are taxed, so if you’re out on disability, you may be forced to make ends meet on 40% of your predisability earnings.

Who would you turn to if you couldn’t work?  Don’t think that Social Security will rescue you, despite the fact that you’ve been paying into it for years.  It can take more than a year for your claim to even be processed, and even longer if your claim is rejected the first time around.  Workers compensation?  Such claims are paid much more quickly, but the vast majority of disabilities are not work related, so workers comp is not an option. 

What are the chances that you’ll suffer a disabling illness or injury in your lifetime?   No one really seems to know that.  But here’s one thing you can be certain about.  You are your best advocate and your ultimate safety net.  You can make sure that your financial future is secure.

If you don’t have your own disability income protection policy, now is a good time to apply for one.  We’ll help you find the right combination of coverage and premium so that you’re prepared for whatever happens, come rain or come shine!

I want to share with you these eye popping disability trends. The Council for Disability Awareness (CDA) conducts an annual review of long-term disability claims among the U.S. working population to determine continuing or emerging trends. The 2007 CDA Long-Term Disability Claims Review includes long-term disability insurance claims data from member companies and Social Security Disability Insurance (SSDI) program.

The five key trends are below:

1) The growth of serious disabilities among the U.S. working population continues to be alarming. Over the last 10 years, the number of U.S. workers with long-term disabilities has grown four times the increase in the number of workers in the U.S. workforce. The number of individuals receiving long-term disability insurance payments also continues to increase.

2) Working women and younger employees are more vulnerable to serious disability. The growth in the rate of serious disability for working women is twice the growth rate of disabilities among working men. More younger workers in their 20s, 30s and 40s are experiencing serious disabilities.

3) Favorable trends in cancer, cardiovascular/circulatory and nervous system-related long-term claims may be the result of advances in medical technology. The growth of musculoskeletal, connective tissue, mental disorder and accident/injury-related claims may be related, in some degree, to certain lifestyle choices and personal behaviors.

4) Social Security Disability Insurance approval rates declined to 37.6% in 2007, the lowest point in the history of the program, while applications for disability payments continued to increase, reaching 2.2 million. SSDI payments have not kept pace with the growing financial needs of disabled workers, putting the financial security of more workers and their dependents at greater risk.

5) Financial planning in the event of an income- limiting disability is becoming more critical and urgent for wage earners as the accountability for personal financial security continues to shift away from social programs and employers toward the individual worker.

It is even more evident to protect your most important asset i.e. “your income earning capacity”. Please contact BeamaLife Disability Insurance Specialist at (866) 972-3262 for your personalize quote and advice.

If you become disabled and your life insurance policy contains a waiver-of-premium benefit, you will not have to pay the life insurance premiums as long as you are disabled. However, the disability must be total and must last for at least six months. Certain exclusions also apply.

Some life insurance contracts automatically provide the waiver-of-premium benefit. For most contracts, the benefit is optional, and when you apply for coverage, you must ask that a rider be attached to your policy to receive the benefit. In the latter case, you will pay an additional premium.

The waiver-of-premium provision has a waiting period of six months. That is, the insurance company waits six months from the beginning of your disability before it actually waives the premium. So, you must continue to pay life insurance premiums until the six months have passed, regardless of the severity of your disability. If the waiting period is over and you are still totally disabled, the insurance company will waive the premiums retroactively.  There are some injuries for which the waiver-of-premium provision does not apply. These exclusions include intentional self-inflicted injuries and those resulting from war while the insured is in the military. Also, contracts may limit the benefit to those under the age of 60.

We believe you certainly should add waiver-of-premium rider to cash value policy if you are younger than the age of 50. For term life insurance policy, if the premium is very small and affordable even during the disability then you should avoid adding this rider as it will raise the premium.

Please call BeamaLife Specialist at (866) 972-3262 to discuss this rider in detail.

Yes. If you have long-term disability coverage through a group plan offered by your employer, your premium will be the same as the premium of everyone else who participates in that plan. But, the premiums for everyone will depend on the general risks of the industry in which the employees work. If you’re buying an individual policy, your profession will also determine your premium. The difference is that many other personal factors will affect your premiums, such as your health, income, hobbies, and so on.
 
Common sense (and statistical data) indicates that some jobs are more dangerous than others. Construction workers, police officers, firefighters, and miners are more likely to be injured on the job than are architects, artists, or IT professionals. If you work in a high-risk occupation, you may be denied individual disability income insurance coverage altogether. Or, you may be offered it only at a very high premium. The insurance company will group your job in a risk category based on your duties and the industry’s claims experience with people in that occupation. All other factors being equal, the higher the claims rate by individuals in your profession, the higher your premiums for long-term disability insurance are going to be.

Visit BeamaLife for comparision, research and life insurance quotes.