Saval Insurance Disability

Disability

What is your most valuable financial asset? Your business? Your pension? Your house? No, your most valuable financial asset is your ability to earn an income, which is as true for an employer as it is for an employee. What would happen if suddenly an employee had an accident or illness and was unable to work? How would he/she pay their bills? We have car insurance, homeowner’s insurance, but what about coverage for our most important asset of all… your salary?

Major medical insurance alone won’t help your employees protect their financial assets: According to research done by Harvard University in 2005, more than 48 percent of all U.S. bankruptcy filings are due to illness or injury.

In the case of illness or injury, disability insurance helps you maintain your standard of living and pay your bills. The maximum coverage you can get is usually 70 percent of your gross income.

There are two types of disability coverage:

1. Short-Term Disability: This policy pays benefits (i.e., a monthly amount that is a percentage of your gross income) while you are disabled. These benefits are typically payable for two weeks up to two years.

2. Long-Term Disability: This policy replaces income for a significantly longer amount of time. Typically, you can choose benefits lasting two years, five years, until age 65, until age 67, or for the rest of your life. Most workers prefer the age-65 option since Social Security kicks in after that.