Disability Insurance

What’s your most valuable asset?

Ask most people to think about their most valuable asset, and they’ll mention their home, their car, their jewelry, or other possessions. But for most of us, our most valuable possession isn’t any one of those things. It’s our ability to earn a living. You need to insure yourself in case you are no longer able to work; disability insurance provides a source of replacement income if you’re unable to work due to an illness or accident.

Roughly 3 in 10 Americans will suffer a disability lasting 3 months or longer before the age of 65. Nearly 1 in 5 Americans will be disabled for one year or more during their working years. A Harvard study* found that over half of all personal bankruptcies and mortgage foreclosures are due to disability. It’s shocking that in the richest nation in the world, many people are within six weeks of personal bankruptcy.

Would you be able to maintain your standard of living if you were too ill or injured to work for an extended length of time? Half of all home foreclosures in the United States result from disability as do an alarming number of personal bankruptcies. A disabling injury or illness could lead to medical bills, modifications to your car or home, or other unforeseen needs that can be quite expensive. Simply put, if you have a job you likely need disability insurance.

Who Needs Disability Insurance?

If you are dependent on your income, you are a candidate for disability insurance. At Set for Life Insurance, we focus on helping working professionals protect their future income. You may be eligible for a group rate or discounts. Depending on the insurance company, you may be able to set up discounts if 2 or 3 people apply for a policy from the same employer. If you have student loans, they do not go away if you become disabled, so protect your future by requesting a disability insurance quote.

Group Benefits vs. an Individual Policy

If you work for a large group or practice, you may be offered a group policy. Group policies typically offer a limited monthly benefit (60 percent of your income to a maximum of $10,000 or $15,000/month). Group policies can’t discriminate – they must offer coverage to everyone in the group. Consequently, they often lack the important provisions of a personal policy. Even if you have a group policy, it is still important to consider supplementing with an individual policy.

We Specialize in Disability Insurance for Professionals

Set for Life Insurance has offered customized disability insurance policies to a wide range of professionals including professional athletes, engineers, attorneys, consultants, business owners and executives, with particular expertise in customizing specialty-specific disability insurance policies for the medical and dental community:

Thousands of professionals have relied on Set for Life Insurance to get them the coverage they need to protect their earning potential. We understand your unique situation, needs and complexities. Our in-depth experience in writing policies across all medical specialties will help you get the best disability insurance policy to ensure you can live your life without worrying about a potential injury derailing your future.

“I thought I would always be able to work no matter what happened to me as long as my brain was intact. However, after my first cancer treatment, I could no longer work at the same capacity. So glad my income was protected!” said Krishna P., Palo Alto, CA.

How Much Disability Insurance Do I Need?

  • Set Up a Budget
    The first step in developing a plan of action is determining your monthly income and expenses in the event of a disability. Use take home pay as income and fixed expenses to determine your insurance needs. Keep in mind that individual disability insurance benefits are non taxable if you pay with personal income.
  • Assess Your Income
    Be aware of other (or lack thereof) sources of income. Your greatest asset is your ability to work and earn an income. Without that, alternative sources of income can help support you and your family’s lifestyle and financial security.

    Potential Earnings to Age 65
    (with 5 percent annual salary increase)
    Age $50,000/year $100,000/year $150,000/year
    30 $4,516,000 $9,032,000 $13,548,000
    35 $3,322,000 $6,644,000 $9,966,000
    40 $2,386,000 $4,773,000 $7,159,000
    45 $1,653,000 $3,307,000 $4,960,000
  • Determine the Financial Impact of a Disability
    Disability can drain your family’s savings and jeopardize your financial security. When you’re disabled, you may not only lose your ability to earn a living, you could also lose your savings, your retirement funds and even your home.

*Health Affairs, the Policy Journal of the Health Sphere, February 2, 2005

Disability Insurance Premiums

If you are concerned about paying for your disability insurance while getting established, there are several things we can do to reduce your premium as much as possible.

  • Look for Discounts Set for Life Insurance has discounts set up at companies and hospitals throughout the country. This can save you between 15 to 55% on your premiums (depending on gender and occupation). If discounts are not yet set up at your place of employment, contact Set for Life to help implement the discounted rates.
  • Consider a “Graded” Premium This is initially less expensive and your premium will increase each year. If you wish to lock it in at a later time, you may do so on any policy anniversary.
  • Add Increase Options You may choose to simply supplement what your group policy already offers and load up your policy with increase options. This will allow you to keep your premium low now and still reserve the right to increase it in the future without any underwriting.

Are you ready? Get set - for life!

Dr. Jason R., Pediatric Orthopaedic Surgeon, Denver, CO

Set For Life Insurance has been great to me in getting my specialty specific disability insurance plan set up as well as helping it function to my benefit.  I was involved in a major car accident last year which almost took my life as well as almost ruined my career as an orthopaedic surgeon.  Thank you, Set For Life, for all you have done.

We’re here to help

Getting the right disability insurance can be downright confusing. At Set For Life, we’ll help you understand the options and work with you to select just the right product for you and your family. These articles will help you understand some of the complexities involved, but we’re happy to walk you through it! If you’re ready to get set, reach out for a quote today!