Chance of Being Disabled.

The first column represents your age, the second column is the likelihood or chance, and the last column is the average number of years a person is disabled if it were to last more than 90 days.

Age  Chance   Yrs
25    44%       4.3

30    44%       4.3

35    42%       4.7

40    41%       5.1

45    39%       5.5

50    36%       5.8

55    33%       6.2

Individual DI

Pay day. We all look forward to that day each pay period when we receive our reward for a job well done. But what would happen today if you didn't have a pay day, or two or 20? This could happen if you were to become sick or hurt and unable to work. You may not think it will happen to you, but the fact is the statistics are frightening. During our working years, we're more likely to become disabled than to die prematurely. Yet most of us plan for the likelihood of death by purchasing life insurance, but not for the probability of becoming disabled. Ask yourself, if you were to become sick or hurt and unable to work, how long could you survive financially without an income? Disability insurance could be the means of financial survival.

Disability Insurance (DI), sometimes referred to as income protection, is exactly that -protecting your ability to earn a living. If you become sick or hurt and unable to work, you'll receive payments, based on your particular policy. This check will help you continue paying living expenses such as rent, mortgage, car payment, food, insurance, utilities, medical expenses and more.

Who needs DI?

If you depend on your ability to work and earn an income, you need disability insurance. If you cannot respond to, "Who will take care of your monthly expenses if you become sick or disabled and not able to work?" you need DI.  Like all insurance, there is a premium for this protection.  Ask yourself this one question, if I become disabled today, what will cost me more, the bills I have to pay in the future, or the premiums I have been paying for my Disability Insurance in the past?

How much DI do I need?

Add up all the benefits you are entitled to under any employers program and other individual disability insurance you may have, along with the monthly income you could count on from other sources such as your savings. If the total is less than your required income after taxes, you may be unable to pay your day-to-day bills while recuperating. You will want to consider purchasing additional disability insurance and should contact Michigan Health and Life Group LLC.

Consider all the things that depend on your income. You may not realize it, but your home, car, health, food, possessions and lifestyle all depend on your ability to work and earn a paycheck. Have you ever stopped to calculate how much your bills add up to each month? Imagine if you didn’t get an income to pay those bills.

When am I totally disabled?

It is important to consider how your policy defines total disability. During the own occupation period shown on your policy schedule, you are considered totally disabled if you are sick or injured and cannot perform all of the substantial and material duties of your regular occupation.

What about Social Security disability benefits?

Most salaried workers in the United States participate in the federal government's Social Security program. Social Security is best known for its retirement benefits. But the Social Security Administration (SSA) also administers disability benefits.

Here are some important points to remember:

Eligibility is based on being unable to perform any gainful employment, not just the job you were performing at the time the disability began.

You are eligible for benefits after you have been disabled for five months and if the disability is expected to last 12 months or to result in death.

Social Security payments may be reduced by disability entitlements under other government programs.

After 24 months of benefits, recipients qualify for Medicare. If you want the medical insurance portion of Medicare, in addition to hospital coverage, you must enroll and pay a monthly premium.

What do I do when my salary increases?

If you'd like to increase your benefit amount, we suggest you apply for an additional policy.

What do I do if I change my occupation or change jobs?

If you change your occupation, you should call your agent to discuss your current level of coverage. In the event that you change jobs, feel secure in knowing that your disability income policy is portable. It will move with you from job to job.

What is an elimination period?

The elimination period, sometimes called a waiting period, is the number of days that must go by after you become totally disabled before any benefits are payable under the policy. Check your Policy Schedule for the elimination period of your policy.

What is a benefit amount?

The benefit amount is the monthly amount you will receive if you are totally disabled. If you are disabled for part of a month, your benefits will pay for the days you are disabled. Check your policy schedule for the benefit amount of your policy.

What is a benefit period?

This is the length of time we will pay monthly benefits during total disability, as stated on your Policy Schedule.

Is my disability income policy good everywhere?

Yes. Your policy is valid for an accident or sickness incurred anywhere in the world.

What if I go into military service? 

We will put your policy on "Military Suspense" if you enter the service or are called to military duty. You do not have to pay premiums, and benefits are not provided while you are in the service. You need to notify your agent of the date you go into the service. To reactivate your policy, notify us within 60 days of your discharge.

Is business protection available?

Income replacement insurance is particularly important if you own a small business. In addition to standard disability policies, as a business owner, you may be eligible to purchase a Business Expense Policy. This policy will reimburse you for your ongoing monthly business expenses such as rent, utilities, and other employees' salaries during your disability. This will allow you to keep the doors of your business open until you are able to return to work.

What is the process if I need to make a claim on my DI policy?

We want to pay your benefits as soon as possible. Help us by notifying the Benefits Department immediately, even if you are not certain your total disability will extend beyond the elimination period. Please do not wait until the elimination period has expired or you have returned to work to notify us. Doing so could delay your claim. We will send claim forms to be completed by you and your doctor.

Are DI claim forms important?  

Yes. Before making a payment, the carrier needs to have a statement from you as to the reason for your disability. We also require a statement from your doctor confirming your disability and stating the expected period of disability on a month-to-month basis.

When can I expect my first DI claim check?

Once your claim has been approved, your first check should be received about 45 days after the elimination period of your policy has passed.

What DI benefits will I receive if I am totally disabled less than a month?

If you are totally disabled less than one month after the elimination period has expired, benefits are payable for each day of total disability.

Do I pay premiums on my DI while I'm disabled?

Your policy includes a Waiver of Premium provision. This means, after more than 90 days of continuous total disability, no further premiums need to be paid while you are disabled.

What If I Don't Become Disabled?

When protected by a disability insurance policy with the optional Surrender Value Rider, you win either way. At age 65, you will receive a refund of 100% of all premiums paid, less any benefits paid to you. That's protection if you need it, money if you don't.

Odds of Disability- In life, there’s never a dull moment. From happy celebrations such as weddings and new babies to new jobs and new homes, along with unfortunate events such as divorces and deaths, life changes every day. How would you be able to face such changes without an income? The fact is that your income is one of your most valuable assets, as your livelihood depends on it. If you were to become sick or hurt and unable to work, how would you survive?

Age                  chance of becoming                              Average duration of disability                                   becoming disabled                               if it lasts more than 90 days

25                    44%                                                     4.3 years

30                    44%                                                     4.3 years

35                    42%                                                     4.7 years

40                    41%                                                     5.1 years

45                    39%                                                     5.5 years

50                    36%                                                     5.8 years

55                    33%                                                     6.2 years

60                    27%                                                     6.6 years

Source – Disability Probability- Exposure Draft Report to The Society of Actuaries. Disability Duration – Journal of the American Society of CLU & ChFC Vol VII No. 1.