ConciergeHNW - Disability

What is your most important asset to your family? The answer is usually your income. While many people are quick to address their family's needs in the event of a breadwinner's death, they fail to address loss of income due to a far more likely exposure - Long Term Disability. Below, is some basic information about Disability Insurance and the variety of provisions that determine the scope of coverage in each contract. It is important to understand these components and it is equally important to work with an expert who can guide you towards making the right purchase decisions.

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DISABILITY

Things to consider:	The Solution:	Sources of Disability Income Protection:
Your income is typically your largest asset. The financial consequences of a lengthy disability could literally cost you millions. According to a Harvard Law/Medical School study, medical expenses associated with an illness or accident caused nearly 50% of the bankruptcies in 2001 (Health Affairs, February 2005). 70% of working Americans couldn't make it one month before financial difficulties . The odds of becoming disabled are much greater than you might realize. A vast majority of long term disabilities are not job related. How will you meet the expenses of disability just at the time your income ceases?	Disability Insurance provides you and your family with a source of replacement income to help make ends meet until you're able to return to work. Important Product Features Cost of Living Adustments (COLA) Residual Disability Rider Own Occupation Rider - Mental / Stress Related Illness	Workers Compensation Insurance - only pays for job related disabilities. State Disability Insurance Programs - Provided by a handful of states but only for a short period - usually 6 months. Social Security - Payment levels are modest and 60% of applications for Social Security disability benefits are initially denied. Employer Sponsored Coverage (group disability) -Terms may be restrictive - be sure to review provisions carefully. If premium is paid by employer, benefits will be taxed as income when received. Individual Disability Insurance - The most flexible and reliable source of coverage is an individual disability insurance policy you purchase on your own. A privately owned policy is portable, meaning you won't have to worry about losing coverage if you change jobs. Generally, most individual plans will pay between 40% to 65% of your predisability gross salary. When paid with after-tax dollars, benefits are received income-tax free.

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