Disability
We offer excellent options for Disability Insurance in Santa Cruz. To ask questions or get more information, call us at (831) 475-4316 or read below for some interesting facts.
Surprising Disability Probabilities
Here are some stats from the Life and Health Insurance Foundation for Education, November 2005:
- If you are between the ages of 25 and 55, you are more likely to become disabled than die. Scary thought huh?
- 60-percent chance at ages 30, 40 and 50 that one in a group of five people will suffer a long-term disability before age 65 .
- There is a 1 in 3 shot that before the age of 35, you will be disabled for more than 3 months during the rest of your working days.
Do You Need A Long Term Disability Insurance Policy?
Disability insurance provides you with cash that you can use for paying your mortgage or rent, buying groceries and meeting other ongoing living expenses. If you rely on your employment income and do not have at least 6 months worth of income sitting in a savings account, you should consider purchasing a disability insurance policy.
Putting Disability Insurance Policies in Perspective
For most people, there are two main forms of disability income insurance to consider:employer-sponsored policies (called “group” policies) and private insurance policies. Group policies are relatively inexpensive and will usually remain in effect for as long as the individual is with the employer. But there are often significant limits on the benefits provided by these policies, so it’s important to determine whether coverage is adequate for your needs.
Private insurance policies, paid for by individuals, typically are more expensive than group policies but may also provide a higher level of coverage. In certain instances, those with a group policy may want to consider purchasing a private policy to fill in the income gaps frequently associated with group-only coverage.
How Much Disability Income Insurance Do You Need?
The key to determining your needs is to assess how much you would be required to spend during each week or month that you would be unable to earn your normal pay. For example, if you would need 80% of your pretax earnings but your group policy would only pay an amount equal to 60%, then you may need additional coverage.
The Definition of Disability
The way in which an insurance policy defines disability can determine your eligibility to receive benefits. The following is a quick overview of three basic definitions:
- The most comprehensive definition of disability, it states that you are unable to perform the duties of the occupation you were performing at the time of the disability.
- Income replacement. Policies with income replacement coverage define disability as sickness or injury that doesn’t allow you to perform the duties of your occupation and typically stipulates that you are not currently engaged in any other occupation.
- Gainful occupation. These policies define disability as the inability to perform the duties of your occupation or any occupation that you are considered to be reasonably qualified for by way of your education, skills or training.
If you would like more information about Disability Insurance in Santa Cruz, Capitola, Scotts Valley, Soquel, Aptos, Ben Lomond, Felton, Boulder Creek, Watsonville, La Selva Beach, Fredom, Brookdale, or Davenport, please give us a call at (831) 475-4316
