Why Do I need DISABILITY INSURANCE?

You rely on your income to fund every aspect of your life. If you are like one of the millions of Americans who unexpectedly becomes unable to work each year due to illness or injury, the last thing you want to worry about is how to continue paying your bills without an income. 

A common misconception about disability insurance is that its sole purpose is to cover against catastrophic events resulting from accidents.

In fact, illnesses like cancer, depression, and multiple sclerosis far more often impact your ability to work and support yourself and your family.  Individual disability income insurance is designed to protect your income if you cannot work due to illness or injury.

• 90% of disabilities are caused by illness 
• 10% of disabilities are due to injuries 
• 1 in 4 of today's 20-year-olds will become disabled before retiring 

Disability insurance can help you fill in the gap between insurance you may get from work.

To answer the question of how much insurance you need, start by estimating your current monthly living expenses, including:

• Housing
• Utilities
• Food
• Childcare
• Loan payments
• College savings or tuition
• Retirement savings
• Auto expenses
• Any other regular expenses

Other factors to consider:

• How long can you wait before benefits start?
• How long do you need benefits to last?
• What would you consider disability? For example would you stop working if you couldn’t do what you do right now (own occupation disability insurance), or could you change occupations or accept a position that pays less than you currently earn, with insurance filling in the gaps.

Guardian plans offer some of the following features:

• Waiver of premium: Waiver of premium for disability is a provision in an insurance policy that states the insurance company will not require the insured to pay the premium if they are disabled and receiving benefits. Unlike most other insurance companies, we’ll also continue to waive premiums for six months after you recover and benefits end.
• Hospice care benefit: If you’re admitted into a qualified hospice program, you’ll be considered totally disabled (eligible for benefits) and in many cases, the policy elimination period will be waived so you can receive benefits sooner.
• Unemployment premium suspension: Suspends premiums while you’re unemployed, allowing you to stop paying premiums but continue owning the policy. However, coverage is also suspended while you’re unemployed, so if you become disabled during that time, you won’t receive a benefit.
• Occupational rehabilitation and modification and access benefit endorsement: Helps pay for occupational rehabilitation expenses plus the cost of modification to your work environment to accommodate physical limitations.

Plus, several optional disability plan riders are available:

• Future increase option: This lets you increase coverage in the future as your income rises, without having to undergo a medical exam or provide proof of medical insurability.
• Cost-of-living adjustment (COLA): A rider that states the insurance company will increase your benefit to account for inflation.
• Catastrophic disability benefits: Provides extra funds — up to 100% income replacement — if due to injury or sickness you are unable to perform two or more activities of daily living, are cognitively impaired or irrecoverably
• Student loan protection rider : This optional benefit provides extra money to make student loan payments during the benefit period. It is particularly useful for early-career professionals such as doctors and lawyers who have invested heavily in their education.

• Apply while you’re healthy. You get the most favorable terms by buying individual disability income insurance before you need it. Once you’re too sick or injured to work, you usually can’t get the protection you need.
• Lock in pricing. Once you have your non-cancellable and guaranteed renewable policy, the amount you pay each month is guaranteed, and the insurance company can never cancel your coverage as long as you make your payments on time.
• Secure coverage while on the path to your career. If you’re studying to become a professional such as a doctor, dentist, or a lawyer, you can apply for insurance before you graduate, with options to increase coverage as your income grows.
• Customize your coverage. You can select options to customize your protection. These options can let you increase coverage as your income grows and help keep pace with the cost of living. You can even buy coverage to help you replace your retirement plan contributions or protect your ability to repay student loans during a period that you can’t work due to sickness or injury.