Do You Need Disability Insurance?
(NAPSI)-Many people have had to learn the hard way that
losing income because of an unexpected illness or injury could put their family at the
brink of financial hardship. Fortunately, today a growing number of consumers are covered
by disability
income insurance, which provides people with income should they become sick or injured
and unable to work. Individuals
can purchase policies directly from an insurance company, or they can participate in a
group plan sponsored by their employer, which may pay all or part of the premium.
Those who think disability only happens to someone else
should think again. According to the Individual Insurance Tables compiled by the nation's
state insurance commissioners, 35-year-old individuals are six times more likely to become
disabled and lose a source of income than they are to die before reaching age 65. And
research shows that women face a higher risk of disabling illness than men, but are less
likely to have insurance protection.
Most states mandate that employers provide workers'
compensation insurance for a disability that occurs on the job, but that's the catch: if
the disability isn't job-related, no benefits are paid. And the Social Security
Administration provides disability income for certain workers who qualify, but the
benefits are modest and generally payable only six months after the disabling event. In
short, workers' compensation and government-sponsored programs offer limited benefits to a
limited number of people, and they are no substitute for private
disability income protection.
For a free guide to understanding the financial risks
associated with disability, call the Health Insurance Association of America toll-free at
1-866-872-3434 (866-USA-DIDI), or visit www.hiaa.org.
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