to work due to covered injuryorillness, you can still protect yourself and your family with disability income protection insurance. “It’s important coverage, but many consumers either don’t realize they don’t have it or think they don’t need it,” says Joe Foley, Senior Vice President, Products and Marketing, UnumProvident Corporation. UnumProvident is a leading provider of income protection insurance. Most disabilities are temporary in nature, and so it is more important than ever to have the foundation of financial support provided by income protection insurance while focusing on recovery. Today’s policies are widely available through the convenience of the worksite. And today’s policies go beyond financial benefits to include clinical and vocational support to assist individuals in returning to work and productivity. Five ReasonsI Don’t Need Disability Income Insurance 1. It wont happen to me. Some 30 percent of those 35 to 65 suffer a disability of three months or longer. And once a personis disabled for 90 days, the average length of disability is two years.’ 2. My employee benefits cover disability. Health insurance would cover the medical costs, but what about your salary? In addition, neither major medical nor workers’ compensation insurance provides income protection benefits for injuries or illnesses that occur off the job, which happensin more than 60 percent of cases.’ For those with employer-provided disability insurance, the typical policy generally covers 60 percent of an individual’s income and the benefit is taxable. 3. I have enough savings and investments. Savings can be depleted quickly during a disability. Don’t forget there are stiff penal- Onereason fordisability income insurance: Neither major medical nor workers’ comp provides income protection benefits for injuries or illnesses that occur off the job. ties for withdrawing retirement investments. Statistics show that one-quarter of U.S. households currently have net assets under $10,000. 4. I have Social Security. The benefit for a 30-year-old single individual making $60,000 is $1,600 a month.‘ The benefit for a 50-year-old married individual making $100,000 is $2,700 a month. There often are long waits before benefits begin. 5. We can live comfortably on my spouse’s income. A disability could mean additional expenses. One spouse’s disability can greatly reduce the other’s earning power, andliving on one, reduced income can be tough when you're used to living on two. “As with any insurance,it’s best to be prepared. Many employers now offer a base level disability incomeprotection insurance,” Foley advises. “But if your employer does not offerit, or if the coverage doesn't adequately protect your income, think about an individual policy. Talk to your employer about a supplemental policy or call your insurance agent,” he adds. ‘Commissioner's Disability Table A, Society of Actuaries, 1985. Chances ofdisability occurringbefore age 65 andlastinglonger than 90 days. “An Employer's Guide to Disability Income Insurance, Health Insurance Association of America, 2002. “One-Quarter of U.S. Households are Wealth Poor, AmericaSaves Press release, May 13, 2002. “Social Security Administration, Monthly Benefits at Disability Table, 2001.
