The Role of Disability Insurance in Protecting Your Income

Workers compensation isn’t the only type of insurance you can get to replace your income when you’re hurt or suffer from a serious illness. Disability insurance can help protect your lost income, too, and its coverage can be customized to fit your needs if disaster strikes.

What Is Disability Insurance? Is It Offered Through Secure Insurance Group?

Disability insurance helps replace your income when you’re unable to work due to disability. However, it replaces a portion of your lost income rather than supplying you with 100% of the compensation you received as an employee.

It comes in two main forms – short-term and long-term. Short-term disability coverage replaces roughly 60% to 70% of your base salary, but only for a few months to a year at most. 

Long-term disability insurance can last until the policyholder is no longer disabled, or it may be for a specified number of years or at retirement age if the disability persists. However, long-term disability replaces a smaller portion of the disabled worker’s income compared to short-term, equating to roughly 40% to 60% of the policyholder’s base salary.

This is a policy you can purchase at a low price from Secure Insurance Group. We’ll get you the best policy that works for you.

How Does Disability Insurance From Secure Insurance Group Protect My Income?

Disability insurance from Secure Insurance Group protects your income by issuing funds to you after you have a serious illness or injury. You don’t necessarily have to be completely disabled to benefit from this. If your disability requires you to work fewer hours, or if you have to work a lower-paying job due to the inability to perform the job you had prior to your disability, disability insurance can still help replace a portion of the income lost.

This coverage also protects your savings. If you have an emergency fund, disability insurance will give you a stream of income so you won’t have to burn through the money you’ve saved over the years.

Who Needs Disability Insurance?

If you rely on the income you earn through your job to live, you need disability insurance. It doesn’t matter what field you’re in or if there is any manual labor involved. You can become seriously injured outside of working hours at any location and lose the ability to perform your job.

How Much Does Disability Insurance Cost?

Disability insurance costs anywhere from 1% to 3% of your annual income per year. How much you pay depends on a variety of factors.

Your costs will depend on:

  • Age
  • Gender
  • Health
  • Whether you use tobacco
  • The likelihood of injury in your profession
  • How much you earn
  • Amount of time you’ll receive benefits
  • Length of elimination period (the time that passes after you become disabled before you receive benefits)

Younger, healthier individuals who work in fields with a low injury risk pay lower premiums than older individuals in poor health who work in jobs that have a higher risk of injury.

Using tobacco has major health risks, which increases the odds of becoming disabled, and therefore it is associated with higher premiums.

Your income plays a role in how much your premiums will be, because the more you earn, the more income your insurer has to replace. On the other hand, replacing a portion of a lower income is less of a financial sacrifice on the insurance company’s part, which will result in lower premiums for you.

A shorter period of receiving benefits with a longer elimination period will result in lower premiums for the policyholder.

What If I Already Have Disability Insurance Through An Employer?

Some employers offer disability insurance, but this has a few caveats – one, you’re only insured as long as you’re an employee of that company. If you’re let go or you switch jobs, you’re no longer protected by that coverage. Another issue with employer-sponsored insurance is that the benefits from the disability insurance are usually taxed.

It’s a good idea to have your own disability insurance, because you can add it to your existing policy, plus it’s always going to cover you regardless of who your employer is at the time you become disabled. The other major bonus of getting disability insurance on your own with your after-tax income is that the benefits you receive from disability insurance aren’t taxed.

The best approach to insurance is covering all your bases and being prepared for any obstacle you may encounter after a catastrophe occurs, and this is especially true of disability insurance coverage.

Get Your Coverage Today

At Secure Insurance Group, you can ensure that you’ll have an income no matter what happens. We’ll get you the best disability insurance policy money can buy – all for the lowest price. Call us at 877-871-7328 to get started.