If you work for a living and don’t have disability insurance and have no plans to look into it, these statistics might encourage you to do so:

• Over 1 in 4 of today’s 20-year-olds will become disabled before they retire.
  Social Security Administration, Fact Sheet March 18,2011

• 8.5 million disabled U.s. wage earners were receiving Social Security Disability Insurance (SSDI) benefits.
  Social Security Administration, Office of Disability and Income Security Programs

• 90% of new long-term disability claims are caused by illnesses rather than accidents.
  2011 Council for Disability Awareness Long-Term Disability Claims Study

• Fewer than 5% of accidents are work-related.
  2011 Council for Disability Awareness Long-Term Disability Claims Study

• The average long-term disability claims lasts for 31.2 months.
  2010 GenRe Disability Fact Book

• New applications for SSDI benefits increased 27% between 2008 and 2010.
  Social Security Administration, Office of Disability and Income Security Programs

• About 100 million workers are without private disability income insurance
  Social Security Administration, Fact Sheet March 18,2011

While all these statistics are eye-opening, the one that is the most striking to me is the fact that 90% of disabilities are caused by illnesses, as opposed to accidents. I can’t begin to tell you how many prospective disability insurance clients tell me they don’t need the insurance because they aren’t accident-prone or don’t participate in activities in which they might get injured.  Cancer and heart disease are two major causes of disability and, unfortunately, anyone is prone to them.

I don’t use statistics to scare people into purchasing disability insurance.  However, sometimes I need to pull them out to show people that the chances of disability are greater than they think.  Then, with this information in front of them, they can take the necessary steps to protect their families from income loss due to disability.

The first thing you might want to do is find a broker (such as those that run this website) who represents several disability insurance companies and ask for quotes from each company and a side by side comparison of benefits so you can easily compare the benefits and premiums of each policy.  The major players in the high-quality individual disability insurance market are Guardian (Berkshire), Mass Mutual, MetLife, Principal, Standard and Union Central.  A broker specializing in disability insurance should be able to get you quotes from these companies.

Make sure the broker gives you the financial ratings (A.M. Best, S&P, Fitch and Weiss, to name a few) for each company.  The financial ratings of the company you go with are extremely important, because you want to make sure the company will be around if and when they need to pay claims.

Next, you want to look at the definitions in each policy, as they define how benefits will be paid.  The main definitions you should look at and compare are:

• Total Disability
• Residual Disability
• Recovery Benefit
• Renewability Provisions

Now, you can compare the benefits, company ratings, definitions and cost to determine the best choice for you.  A good broker should be able to walk you through a comparison in fifteen minutes or so.  By the end of that review, you should have a good idea which company is the right fit for you.

If you would like disability insurance quotes from multiple companies with a comparison of benefits, click on the Get Disability Insurance Quotes on the top or bottom of this page.

In a disability insurance policy, as in any insurance policy, the insurance company is taking on a risk. One of the primary risk factor of disability is occupation, as in how much risk does the occupation pose to the insurance company?  A surgeon, for instance, would pose a great risk of disability than a general practitioner.  If both suffered a serious injury to the hand, a surgeon would most probably be disabled (per the definition above), but a physician in general practice might still be able to continue working.

When getting disability insurance quotes or eventually completing your application for a policy, you will be asked for your occupation and, sometimes be required to provide additional information about your daily duties.  If you have several main duties (e.g. managing a company and sales), you might even be asked the percentage of time spent on each.   Some occupations might need to be further delineated by degrees held, size of company you work for and how long you have been working in the same occupation.

Your disability insurance quotes (and ultimately your policy) will include an Occupation Class, indicated by a number.  There isn’t an industry-wide numbering system, so one company might assign you a 4, whereas another might consider you a 5.   The higher the number (of each company’s numbering system), the lower the risk your occupation presents to the insurance company.  In some cases, a higher number might also mean richer policy benefits.

When requesting disability insurance quotes, be as specific as possible with your occupation.  Some occupation titles are self-explanatory (e.g. cardiovascular surgeon) but others might need additional information,  A good example would be “Executive.”  That doesn’t tell the insurance company much about your duties, so additional information would usually be requested.  We often get quote requests listing the occupation as “self-employed” or “business owner” and can’t really do much with that information, as it really doesn’t tell us what the person does at work.

If you would like disability insurance quotes for your occupation, you can start the process by clicking on the Get Disability Insurance Quotes button on the top or bottom of this page.

True Own Occupation:  Due to injury or illness, you cannot perform the material and substantial duties of your Occupation.  You will be considered totally disabled even if you are gainfully employed in another occupation, provided that, due to injury or illness, you are not able to work in your own occupation.

Modified Own Occupation: Due to injury or illness, you cannot perform the material and substantial duties of your Occupation and you are not gainfully employed.

So, the difference in language is easy to see – the main difference between the two is that in the True Own Occupation definition, you can work in another occupation and will still receive your full benefits (as long as you can’t work in your occupation), whereas in the Modified Own Occupation definition, you will no longer receive your benefit for total disability if you go to work in another occupation.

I have to add that, if you have a Residual benefit in your policy, you might be eligible to receive a partial benefit if you are disabled per the policy language and you choose to work in another occupation.  If you choose to work in another occupation and you have a loss of income of at least 20% (or 15%, depending on the policy), you could receive a percentage of your benefit based on your percentage of income loss.

Which Definition is Right for you?

When looking at both modified and own occupation disability insurance, I ask my clients, “if, due to illness or injury, you can’t work at your occupation, could you potentially work in another occupation (remember, this would be your choice – not the insurance company’s)?”  Many times, the answer comes quickly.  A good example would be a surgeon with a hand injury.  Clearly (unless robotics are involved), if a surgeon has a hand injury, he wouldn’t be able to perform surgery, but might want to work in general practice or teach or do something else entirely.  This person would be better suited to a True Own Occupation definition of disability.

However, take an Executive who works mostly at a desk.  If she couldn’t perform the duties of an Executive, the answer to the above question is most often “No.”  In cases like this, especially if there are budgetary concerns, I would recommend the Modified Own Occupation definition (it is less expensive).

You will hear many arguments in the industry as to which definition serves the policy holder better.  I can’t argue with someone who tells me that the true own occupation definition is better than the modified definition because I would agree that a richer benefit is “better” than one that has restrictions on it.  However, the question I ask that person is, “If a benefit is better (and more expensive) but the person doesn’t need it, is still a better benefit?”

The bottom line is, benefits in a disability insurance policy should be tailor-made for each client and their particular needs.  There are a lot of moving parts and cost factors to consider, so make sure you work with an agent/broker who works with several companies and understands this tailor-made concept.  You will probably wind up with the policy and premium that fits your needs.

Ladder Safety

• When putting up holiday decorations, always use the proper step stool or ladder to reach high places. Don’t stand on chairs, desks or other furniture.
• If you have to use a step ladder near a doorway, lock or barricade the door and post signs so no one will open it and knock you off the ladder.
• A straight or extension ladder should be placed one foot away from the surface it rests against for every four feet of ladder height.
• When you climb, always face the ladder and grip the rungs to climb – not the side rails.
• Always keep three points of contact on the ladder whether two hands and one foot, or two feet and one hand.
• When climbing, keep your hips between the side rails and do not lean too far or overreach. Reposition the ladder closer to the work instead.
• Use ladders with slip-resistant feet and wear clean, dry and slip-resistant shoes when climbing a ladder.
• When using ladders outdoors, get down immediately if high winds, rain, snow or other inclement weather begins.
• Winds can blow you off the ladder and rain or snow can make both the rungs and the ground slippery.

Hosting and Food Safety

• When preparing a holiday meal for friends and family be sure to wash hands, utensils, sink, and anything else that has come in contact with raw poultry. Keep in mind that a stuffed bird takes longer to cook.
• Never defrost food at room temperature.  Thaw it in the refrigerator, in cold water or in the microwave.
• While doing holiday cooking, keep your knives sharp.   Most knife injuries occur due to dull blades.
• Use a clean food thermometer to cook foods to a safe internal temperature before serving.
• Avoid cleaning kitchen surfaces with wet dishcloths or sponges.They easily harbor bacteria and promote bacteria growth. Use clean paper towels instead.
• When reheating leftovers, bring the temperature up to at least 165°F to eliminate any bacterial growth.
• Refrigerate or freeze leftovers in covered shallow containers (less than two inches deep) within two hours after cooking. Date the leftovers for future use.
• Being a smart party host or guest should include being sensible about alcoholic drinks. More than half of all traffic fatalities are alcohol-related. Use designated drivers, people who do not drink, to drive other guests home after a holiday party.

Keep safe and have a wonderful Holiday season.

-The disability insurance specialists at ProtectYourIncome.com

Disclaimer: Information and recommendations contained in this piece are compiled from sources believed to be reliable. The National Safety Council (and Intramark Insurance Services) makes no guarantee as to and assumes no responsibility for the correctness, sufficiency or completeness of such information or recommendations. Other or additional safety measures may be required under particular circumstances.

Christmas Tree and Holiday Decorating Safety

• Never use lighted candles near trees, boughs, curtains/drapes, or with any potentially flammable item.
• Wear gloves while decorating with spun glass “angel hair.” It can irritate your eyes and skin. A common substitute is non-flammable cotton.
• When spraying artificial snow on windows or other surfaces, be sure to follow directions carefully. These sprays can irritate your lungs if you inhale them.
• Small children (and inebriated guests?) may think that holiday plants look good enough to eat, but many plants may be poisonous or can cause severe stomach problems. Plants to watch out for include: mistletoe, holly berries, Jerusalem cherry and amaryllis.  Keep all of these plants out of children’s reach.
• When displaying a tree, cut off about two inches off the trunk and put the tree in a sturdy, water-holding stand. Keep  the stand filled with water so the tree does not dry out quickly.
• Stand your tree away from fireplaces, radiators and other heat sources. Make sure the tree does not block foot traffic or doorways.
• Avoid placing breakable tree ornaments or ones with small, detachable parts on lower branches where small children or pets can reach them.
• If you use an artificial tree, choose one that is tested and labeled as fire resistant. Artificial trees with built-in electrical systems should have the Underwriters Laboratory (UL) label.
• Only use indoor lights indoors (and outdoor lights only outdoors). Look for the UL label. Check lights for broken or cracked sockets, frayed or bare wires, and loose connections. Replace or repair any damaged light sets.
• Use no more than three light sets on any one extension cord. Extension cords should be placed against the wall to avoid tripping hazards, but do not run cords under rugs, around furniture legs or across doorways.
• Turn off all lights on trees and decorations when you go to bed or leave the house. Unplug extension cords when not in use.
• If using a natural tree, make sure it is well watered to avoid dry branches from catching fire from the heat of light bulbs.
• When displaying outdoor lights, fasten them firmly to a secure support with insulated staples or hooks to avoid wind damage. Never nail, tack or stress wiring when hanging lights and keep plugs off the ground away from puddles and snow.

While many of these tips seem like common sense, we still have way too many Holiday-related accidents and deaths every year.  Be safe and have a wonderful Holiday season.

- From the Disability Insurance Experts at ProtectYourIncome.com

Disclaimer: Information and recommendations contained in this piece are compiled from sources believed to be reliable. The National Safety Council (and Intramark Insurance Services) makes
no guarantee as to and assumes no responsibility for the correctness, sufficiency or completeness of such information or recommendations. Other or additional safety measures may be required under particular circumstances.

• The policy should be non-cancellable and guaranteed renewable for the length of the policy (typically to age 65).  Make sure your policy has language that includes both.  If a policy is only guaranteed renewable, the insurance company can raise your premiums in the future.

• The definition of Total Disability should be a true Own-Occupation definition.  This means that if, due to illness or injury,  you can’t perform the usual and customary duties of your occupation (specialty-specific in some policies), you will be considered totally disabled, even if you choose to work in another occupation (or specialty).

• The policy should have a strong Residual benefit, which will pay a partial benefit if your disability isn’t total, but results in lost income due to you not being able to work full time or perform all the tasks of occupation.

• The policy should also have a Recovery benefit which, like the Residual benefit, would pay you a partial benefit based on the percentage of income you have lost due to disability, even if you are able to work full time and perform all the duties of your occupation.

• The benefits in the policy should keep up with inflation, if you are disabled.  Some policies offer a Cost of Living rider which adjusts the benefit on an annual basis, based either on a fixed percentage or tied to Consumer Price Index.  Look for compounded increase, rather than fixed.

While there are other benefits and riders available in disability insurance for doctors, the above are the main points to look for in a policy.  When a physician requests disability insurance quotes from our company, we provide quotes from multiple companies and show them together on our Comparison of Benefits, which allows you to compare these benefits offered by each company in an easy to read format.

If you would like a quote, please click the Get Disability Quotes on the top or bottom of this page.

The reason is simple – physicians represent the largest occupation segment of disability insurance owners.  When I speak with people in other professions, I often find myself having to enlighten my prospective clients about the need for disability insurance in one’s insurance “portfolio.”  However, I usually can skip this step with physicians.  Why is that?

I believe there are several reasons.  First of all, physicians usually have a huge investment in their training, both in time and money.  Student loans and practice start-up costs are astronomical in most cases.  If a physician were to become disabled, income might disappear, but the loans wouldn’t.  Disability insurance for physicians is the only protection for risks that could wipe out that investment overnight.

Another reason I believe physicians, as a group, purchase more disability insurance than other professions is that they witness, on a daily basis, illness and injury in their patients that are career-ending for many of them.  When I speak to non-physicians, many don’t believe that a disabling illness or injury could affect them.  Physicians know otherwise.

Group disability insurance for physicians is provided to them during their residencies.  I know of no other occupation in which the training institutions provide disability coverage.

If you aren’t a physician or dentist, you should take note of these practices and purchasing patterns.   If you and your family depend on your income and you don’t have disability insurance through your employer, I would suggest you take a look at what physicians are doing in regard to disability insurance and look into getting a policy for yourself.  Even if you have a group policy at work, supplementing it with an individual policy might be a good idea for you.

• 65% of initial SSDI claim applications were denied in 2009.
  Social Security Administration, Disabled Worker Beneficiary Statistics, ssa.gov

• Can your family live on $1,065 a month? That’s the average monthly benefit paid by Social Security Disability Insurance (SSDI) in June of 2010. 8% of SSDI recipients received less than $500 monthly. 52% received less than $1,000 per month. 97% received less than $2,000 per month.
  Social Security Administration, Disabled Worker Beneficiary Statistics, ssa.gov

   

   

• The average SSDI monthly benefit payment was $1,190 for males, and $928 for females.
  Social Security Administration, Disabled Worker Beneficiary Statistics, ssa.gov

• Less than 5% of disabling accidents and illnesses are work related. The other 95% are not, meaning Workers’ Compensation doesn’t cover them. Council for Disability Awareness, Long-Term Disability Claims Review, 2011 http://www.disabilitycanhappen.org/research/CDA_LTD_Claims_Survey_2011.asp

Usually these statistics are enough to convince people that depending on Social Security for disability benefits is probably not a wise decision. However, an article I read in last Friday’s (9/30/11) Wall Street Journal gave me one more very good reason I hadn’t seen before. According to the article, Social Security judges and employees in at least seven states were instructed to sandbag (set aside) disability cases for a week so that the following week there would be a significant boost in the numbers for the coming fiscal year – which began a week later.

These officials, apparently in a bid to meet goals to win promotions and thousands of dollars in bonuses, directed employees to withhold decisions on cases for a week, thereby delaying payments to thousands of citizens, most of them in desperate need of those benefit checks. To give you an idea of how many cases were delayed, in the first day of these delays, 230 cases were reviewed and closed…compared to roughly 3,000 it usually averages in a day.

This post isn’t intended to raise your ire at the inefficiencies of our Federal Government. I’ll leave that to other Bloggers and reporters. However, if you are considering purchasing a disability insurance policy and have thought that maybe you could put it off because Social Security will “take care of you,” this, along with the other statistics presented above should, at the least, give you pause.

To receive disability insurance quotes from the top companies in the industry, click the Get Started button above.

Why, you might ask, are physicians so inclined to carry disability insurance?  I believe there are two major answers to this question:

• They spend a lot of time and money on their training and, as a result, their incomes are a reflection of the time and expense required to become physicians.  If, due to illness or injury, a physician could no longer perform the duties of his/her occupation, all the training would be for naught and the training expense would still need to be paid, usually in the form of substantial loans.  The better physician disability insurance policies include specialty-specific occupation language, which enhances the own-occupation definition of total disability.

• Most physicians view the debilitating effects of injuries or illness on their patients on a daily basis.  Seeing their patients incapacitated due to an accident or a disease, you can’t help but figure that this must play a part in the amount of disability insurance policies written for physicians.  People in other occupations certainly aren’t subjected to a daily viewing of illness so, naturally, purchasing disability insurance wouldn’t be a on most people’s “things to do” lists.

If you aren’t a physician, is disability insurance for you?  The first question you have to ask yourself is, if you lost your ability to earn an income, would you (and your family) be able to maintain the lifestyle (or close to it) that you have become accustomed to.  If your answer is “yes,” than you most probably are a candidate for disability insurance.

If you would like to receive disability insurance quotes from multiple insurance companies, click on the Get Started button above and complete the quote request form.