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Disability Insurance

from Insurance Center Associates

Disability Insurance

You have auto insurance, homeowner insurance, and maybe even life insurance, but are you protecting your most valuable asset – which is you? Studies show that at age 20 you have a 3 in 10 chance of becoming disabled before you retire. Chances only increase as you get older or based on your occupation.

Disability insurance can help replace a portion of your income, pay your bills, and help maintain your lifestyle should you become sick or injured and are unable to work for an extended period of time.

Benefits are available from ages 2 to 65 and waiting periods can range from 30 days to 1 year. If you are in a highly skilled or specialized occupation we can insure to your "occupation." A good example would be a dentist or surgeon.

What about SDI or Social Security?

Many states' SDI plans are (1) woefully inadequate in payment amounts and (2) in serious financial trouble. Qualifying for Social Security Disability is very difficult and a "partial disability" is not eligible. Basically, your disability must have lasted twelve months and you are unable to do work that you may be reasonably qualified to perform (a very limiting definition). To see how limited it is, see the Social Security Administration's definition of disability.

Disability Insurance Rates

Rates for Disability insurance are based on several factors:

  • Class— The first and largest factor is classifications, which is based on your occupation. The more hazardous your occupation, the higher the class and the more you will pay. For example, a teacher would pay less than an electrician.
  • Benefit amount— Rates are based on the amount and length of benefits.
  • Personal info — Your age and current health plays a factor as well.

Saving on Disability Insurance Rates

Maintaining (or getting into) good health can help.

In addition you can save on disability insurance by adjusting your benefit period (the amount of time you receive benefits) and the waiting period (amount of time before benefits begin). The longer your benefit period the higher the rate, and the shorter your waiting period the higher the rate.

As an example, a 30 day waiting period with benefits paid until retirement would be much higher than a 90 day waiting period with a 5 year benefit.

Disability Insurance Options

Many carriers offer options than can enhance your disability insurance coverage, save on your premium, or even return the money you've paid.

Social Security Integration– Most plans are now integrated and set a benefit amount that is payable. Benefits are integrated with SDI and Social Securty to provide the amount you ask for regardless of what you are paid.

Social Security Rider– This rider pays the total amount of the benefit regardless of what your State Disability Insurance (SDI) plan might pay. The same is true for Social Security Disability Insurance benefits.

Residual Benefit– This benefit pays you if you suffer a partial loss of income. For example, if you are able to return to work but only on a part-time basis. In most cases there is a minimum loss percent of 20% to qualify.

Return of Premium– This popular option costs more money up front, but should you not have to collect (which we all hope for) on your policy, you will receive a portion or full refund of your premiums after a pre-determined period.

Future Purchase Option (Guaranteed Insurability Option)– This option allows you to purchase additional disability income protection without providing proof of medical insurability. For example as your income increases.

Let us do the shopping for you

Saving on disability rates is important, but so is getting the right plan. Because disability insurance is so important, we represent some of the country's best disability insurance carriers, who can offer not only the best rates but also great coverage options to meet your needs.

Contact us and we'll get you more information.

Our offices are conveniently located at:

1622 S. Gaffey #104
San Pedro, CA 90731

3220 Sepulveda Blvd #202
Torrance, CA 90505