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Disability Insurance with a Better Price.

We’ve partnered with to deliver affordable Disability Insurance meant to protect your beneficiaries from financial hardship.

What if you become too ill or injured to work?

If you are unable to work, would your family be able to meet its financial obligations?
You, as the provider, cover not just your home and vehicle payments, utilities, schooling, and living expenditures, but also advantages from employment and the worth of the personal contributions you provide to your family.

Probability of being handicapped

Anyone can become disabled. Any time, any place.
Nobody anticipates being handicapped. Individual disability income insurance can assist in preserving a portion of your earned income if the unforeseen occurs and you become unable to work due to illness or injury.

Recognize any coverage that you may already have

Many individuals are aware that if they become disabled, the group long-term disability (GLTD) benefits made available to them through their employer’s employee benefits package will cover a portion of their income. Identifying the percentage of income that is covered by GLTD benefits and which benefits are taxable is critical for determining the “gap” in your disability income coverage.

The above example assumes an effective tax rate of 25% and a Group LTD plan paid for by the employer that provides up to $5,000 per month.
Kiplinger. What are the odds the IRS will audit your tax return? And what should you do if it is? June 3, 2016.

U.S. Department of Justice. Victims of Identity Theft, 2016.

Social Security Administration. Fact Sheet, 2019.

What if you became totally disabled and were unable to work?

How long might your funds last in order to pay your fixed costs? Personal savings, Social Security, or employer-sponsored disability income insurance policies may provide less than expected.

Do you have the necessary coverage?

Even if you currently have disability income insurance, you may want further protection. This worksheet might assist you in determining the amount of money you’ll need.
1 If your employer pays for your group LTD, you can estimate the after-tax benefit by multiplying the benefit by 0.75. 2 Actual amount would be based on allowable issue and participation limits.

Income loss might occur.

Many individuals are unaware of the possibility of being handicapped as a consequence of an illness or accident at some time in their lives — or the impact on their capacity to work, generate an income, and care for themselves, their family, or their business.

The worth of your earnings

Your income supports all aspect of your life – not just your mortgage and retirement – but also how you spend time with your family, participate with your community, and progress your profession.
While many individuals do not consider their money in this manner, the fact is that everything you do is contingent upon it. That is the true value of it.

Your income is your most valuable asset.

To estimate the value of your cumulative lifetime income, just multiply your present salary by the number of years remaining before retirement.
In comparison to other assets, such as a home or a car, your capacity to produce an income is frequently your single most valuable asset.

Years of Employment Remaining X Salary(1) = Cumulative Income Over a Lifetime

Your income is subject to three involuntary risks:

Death

It’s not always pleasant to discuss in such direct words, but if you died, your income would cease.

Unemployment

Fortunately, unemployment is rarely permanent, and unemployment insurance can provide temporary assistance.

Disability

Unlike death, which is irreversible, and unemployment, which may be just temporary, disability and income loss may or may not endure the remainder of your working years.

Recognize the disability risk

The chance of becoming handicapped before the age of 67 is 1 in 4 (2) for today’s twenty-year-olds.

Not an accident or injury, but a disease is the most prevalent cause of incapacity (3).

Musculoskeletal/connective tissue illnesses (such as severe arthritis) and mental health disorders are the two leading causes of disability claims.

2 U.S. Social Security Administration, Fact Sheet, December 2019.

3 Integrated Benefits Institute, Health and Productivity Benchmarking, 2017 Long Term Disability, September 11, 2018.

4 Social Security Administration, Annual Statistical Report on the Social Security Disability Insurance Program, 2018.

Income replacement sources

If you become disabled and are unable to work or generate an income for a lengthy period of time, there are a few income replacement options accessible to you.

Each of these revenue streams has limits, and it is critical that you understand them all:

Social Security Disability Insurance

Monthly Social Security disability benefits may be insufficient (5).

Workers’ Compensation

You may be ineligible since just 5% of debilitating injuries and illnesses occur on the job (6)

Employer Group Long-Term Disability Insurance for Employers

Perhaps not as much income replacement as you believe.

Individual Disability Income Insurance

Complete medical and financial underwriting may be required. Oftentimes, individual long-term disability income insurance is more expensive than group long-term disability income insurance.

5 In May 2020, Social Security paid an average monthly disability benefit of $1,121.69. Source: Social Security Administration Monthly Statistical Snapshot, May 2020.

6 Social Security Administration, Annual Statistical Report on the Social Security Disability Insurance Program, 2018. 

Employer Group Long-Term Disability (GLTD)

Employer Group Long-Term Disability is an excellent benefit, and you should take use of it to the fullest extent possible if your employer offers it.

A GLTD benefit may have limits that contribute to the creation of a “Disability Income Gap ” between current income and the GLTD payments you may get if you become handicapped. A typical GLTD offering may include the following:

  • Replace around 60% of your earnings.
  • Have benefit caps on a monthly basis.
  • Provide taxable advantages.
  • Not intended to supplant variable income sources such as bonuses.
  • Disability Income Insurance for Individuals (DI)

Individual Disability Income Insurance, like GLTD, compensates you for a portion of your income if you become disabled. However, the distinction is that Individual DI:

  • Can be used to cover income not covered by GLTD, such as variable compensation.
  • Can assist in reducing the Disability Income Gap.
  • Benefits paid are typically not taxed, as you pay the premiums.
  • Is completely portable, which means that you may take it wherever your job takes you.

Meet Jessica Shin — as she describes herself.

I will never forget the day I was diagnosed with Parkinson’s disease.

It was a bright Spring day, my second visit to this particular neurologist, and in the span of a few seconds in his presence, he stated, “You have Parkinson’s disease,” and let me tell you, I was overwhelmed with emotion. I believe the most vivid memory I have is standing outside that physician’s office with my husband and crying on the floor.

My Parkinson’s illness has touched me, my family, and my workers – in fact, my entire world has been influenced by it. Parkinson’s disease has made me more conscious of something I didn’t fully get in the past: the majority of individuals who are handicapped do so as a result of a sickness, not an accident.

Disability insurance provides a measure of stability, and I cannot describe how much it means to our family.

By Kevin Nolan

As a licensed insurance agent and editor, Kevin is responsible for researching and writing about all matters related to insurance. He has over ten years of experience in insurance and financial planning. His history involves working with StateFarm, and other mutual companies.

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