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Office: 730 W Center Circle
Nixa, MO 65714
Disability Plans
If you’re like many, financial difficulties could arise quickly if your paycheck were to suddenly stop. In fact, a survey by Life Happens found that half of working Americans couldn’t make it a month without facing financial strain, and nearly one in four would feel the impact immediately.¹
That’s where disability insurance comes into play—consider it protection for your paycheck. If illness or injury prevents you from working, disability insurance ensures you’ll continue receiving income, allowing you to cover expenses and stay afloat until you’re able to return to work.
You likely insure your home, car, and other valuable possessions, so it makes sense to protect what funds all of those—the income you rely on. Explore the different sources of disability income protection and see how you can get coverage tailored to your needs.
¹The Disability Survey conducted by Kelton Research on behalf of Life Happens, April 2012
Workers Compensation
If you’re employed and experience a work-related illness or injury, Workers’ Compensation insurance may replace a portion of your salary. This coverage, required in all states, typically provides about two-thirds of your pre-disability income. However, it’s important to note that the majority of long-term disabilities—around 73%, according to the National Safety Council—result from non-work-related injuries or illnesses. In those cases, Workers’ Compensation wouldn’t apply, leaving a significant gap in income protection.
That’s why disability insurance is crucial for covering illnesses or injuries that occur outside of work.
Social Security
The federal government offers a disability insurance program through Social Security, which covers most workers. However, qualifying for these benefits is challenging. According to the Social Security Administration, 65% of initial applications for Social Security Disability Insurance (SSDI) are denied. Additionally, the average monthly benefit in 2012 was $1,130, an amount close to the poverty line. For many, this amount is not enough to maintain their standard of living, which highlights the importance of considering supplemental disability insurance.
Employer Sponsored Coverage
The primary source of disability income protection is often employer-sponsored. Many employers, especially larger companies, provide group disability insurance coverage in two forms:
- Short-term disability (STD): This covers a significant portion of your income for a limited period, usually around three months.
- Long-term disability (LTD): This offers income replacement for extended periods, typically covering 40% to 60% of your pre-tax base salary.
These benefits ensure that employees can maintain some level of financial stability during a disabling illness or injury.
Individual Disability Insurance
Frequently Asked Questions
What is disability insurance, and why do I need it?
Disability insurance is essentially income protection. If you become unable to work due to illness or injury, this coverage steps in to replace a portion of your paycheck so you can continue paying your bills, covering your mortgage or rent, and supporting your family. Without it, most Americans would find themselves in financial trouble sooner than they expect. A survey by Life Happens revealed that nearly half of working Americans couldn’t go a single month without feeling the financial pressure, and about one in four would feel it immediately.
What are the benefits of having an individual disability insurance policy?
How do I know what type of disability insurance is right for me?
It starts with understanding your income needs, existing coverage, and how long you could realistically go without a paycheck. Our team is here to walk you through it and help you find a policy that fits your situation. Whether you’re looking to supplement what your employer offers or need full coverage on your own, we’ll help you make a plan that works for your life.
