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[D407]Disability And Life Insurance

by Ivon T. Hughes, Ivo

Your Disability Life Insurance Premiums

When you apply for disability life insurance, there are several factors that will influence your premium;

Occupation: The more dangerous your job is, the higher the premium will be. A construction worker will face higher premiums than dental hygienists or beauticians.

Health: If you have a medical history with sickness and operations, the disability insurance carriers will charge more for your policy. They see this as a greater risk that they will have to pay out on the policy.

Benefit Period: How long do you want your recuperation time to be? Although a longer period will be better for your healing, the longer a company has to pay out, the higher the premiums will be.

Elimination Period: This is the amount of time you are injured before a company commences to pay you. Policies have different elimination periods with retroactive periods that will reimburse you to the first day. The longer the period, the cheaper the premium.

Policy Provisions: A policy that pays total and partial disability will cost more than one that pays just for total disability.

Other Disability Life Insurance Riders

There are several more provisions that will affect the cost of your disability life insurance policy. These policies are rated on a person by person status, and explain why two people of the same age and occupation can have varying premiums. Consult your local broker to discuss your options for your disability life insurance.

How Important Is Disability Life Insurance?

How important is it for your monthly income to continue? If you cannot work and do not have disability life insurance, you will have no income from employment after any benefits expire.

Perhaps you have income from investments to cover the shortfall? If so, well and good, so long as do not start eating into the capital.

So Why Not Try To Get Disability Life Insurance?

Great question; why not try and see if you can qualify for disability life insurance?

Choosing between protection on your life and protection on your income is a decision best not made. Both are very important. Life insurance is essential when you have dependents who would suffer without you being there to provide financially. Life insurance is an inexpensive gift to those we love the most. It continues your provision and love even after an untimely death.

However, what happens if you lose your ability to work, even for a short time? Think about it for a moment.
Ask yourself these questions:

1. If I am sick or injured and cannot work is there someone who can provide for me during that time?

2. If a relative or friend who could provide for you, would you mind
asking that person for help?

3. Do you have a spouse who works and could you survive on their income alone or must you contribute money towards basic living expenses?

4. If you must have money coming in, how much would you need to keep the roof over your head and food on the table?

The key question is: It is that question that moves me off the fence on life versus disability insurance. Life insurance is in essence death insurance. In most cases, it provides no benefit while you are alive. Life insurance provides for your loved ones after your death.

Are you aware of the statistics about how likely you are to be still alive and unable to work for a period of time- short or long? Without disability insurance, you may be around to watch your loved ones suffer. Without your income how can you pay any of your bills? An emergency fund of at least six months income can prevent a crisis for short term income loss. Living debt free is also very helpful when the unexpected occurs.

How many of us live the ideal debt free lifestyle and have even one month's emergency fund? Everyone knows that most Americans live paycheck to paycheck. Most of us are only a few paychecks from being out on the street. Although a disabling injury occurs every few seconds, we are NOT financially prepared if an accident or sickness interrupts our ability to work. Even group disability benefits at your job can leave you with as little as 40% of your income after taxes. Can you live on 40-50% of your income?

Disability insurance is even more essential than life insurance because it provides money while you are still alive!

Written by Anne Foster at

Article Source : Pg. 59

About Author

Both Ivon T. Hughes & Anne Foster are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Ivon T. Hughes has sinced written about articles on various topics from Home Improvement, Finances and Insurance. Ivon T. Hughes of The Hughes Trustco Group is the author of the Life Insurance Handbook: How To Get The Best & Cheapest Life Insurance available FREE to all new subscribers at:. Ivon T. Hughes's top article generates over 49500 views. to your Favourites.

Anne Foster has sinced written about articles on various topics from Finances, Health and Hair Care. Anne is trained and experienced as a teacher, college psychology instructor, professional counselor, pubished technical writer and photo journalist. She is the owner of , a firm that provides help t. Anne Foster's top article generates over 3600 views. to your Favourites.