Disability Income Insurance

Illness and injury often occur at the most unexpected times. Pain and discomfort are already distressing, but if you’re so unwell that you can’t earn an income, the burden will be even harder to bear. This is why disability insurance is so important for professionals in their higher earning years. Many individuals limit their insurance planning to life and health insurance, but disability income insurance can be just as important. Finding the right plan on your own can be difficult. Colorado Wealth Group can guide you in the right direction.

Why Disability Insurance Is So Important 

Employees who suffer work-related injuries or illnesses can often draw on workers’ compensation insurance. Some employers offer health insurance plans that can assist employees if they become disabled. Therefore, you may be wondering if you really need disability income insurance. The reality is that group disability income insurance plans may not pay out adequate amounts and worker’s comp is limited to injuries that arise out of one’s duties. The fact is, most disability claims are not work-related and most aren’t even accidents at all. Over 90% of disability claims are illnesses, according to a claims study by Guardian Life. More importantly, self-employed people usually have no choice but to seek their own insurance coverage and disability insurance is often overlooked. 

The Basics of Individual Disability Income Insurance

Disability income insurance will provide income to a disabled or ill person who is unable to perform their usual work duties. Benefits are usually paid each month to help the individual maintain their standard of living and meet their obligations. So, how much does disability income insurance cost? Premiums usually vary between 1.5 percent and 3 percent of an individual’s gross income. In return, insured people can typically get between 45 and 65 percent of their income while they are temporarily or permanently disabled. 

Not every policy is the same. Depending on which insurer and plan you choose, the covered disabilities will be different, and the benefits for which you’re eligible will vary. Usually, low-cost plans offer fewer benefits and there are strict conditions in place for accessing those benefits. In contrast, premiums are typically higher if the disability insurance policy provides you with a wide range of benefits. Instead of trying to assess and compare the various options on your own, it’s a good idea to consult with a personal insurance planner.

Get Professional Guidance from Colorado Wealth Group

If you want to protect yourself against the loss of income that often results from disability, we can advise you on the next steps. Schedule a consultation with a member of our team today and learn how you can take charge of your future and protect your most valuable asset: your income