It can happen to anyone.
Every day, because of illness or injury, people lose their ability to earn an income, and that disability can last weeks, months, or even years! Studies show that 43 percent of all 40 year olds will have a long-term disability event prior to age 65. In fact, the risk of needing long-term disability insurance is greater than the risk of premature death during your working years.
No one likes to think about getting hurt or suffering a devastating illness, but you can’t just roll the dice. Disability Income insurance will give you protection and peace of mind.
Here is how the Disability Income plan from Pekin Life Insurance Company works: you select your Elimination Period, Benefit Period, and Monthly Benefit Amount.
The Elimination Period is kind of like a deductible in time. It is a period of time that you must be disabled before you can start receiving benefits. Options available are 30 days, 90 days, or 180 days.
The Benefit Period is the period of time over which you would like to be able to receive benefits should a disability occur. Options available are 2 years, 5 years, or “to age 67.”
The Monthly Benefit Amount is the actual dollar amount of your desired benefit to be paid during the benefit period. Eligible benefit amounts are between $1,000 and $10,000 per month and can equate up to 60% of your gross income.
Once you have made these selections, it all adds up to what we refer to as the Total Disability Benefit. We will pay a monthly benefit beyond the elected elimination period for a period of time up to the maximum benefit period elected while you are totally disabled. You are considered totally disabled if you are unable to perform the material duties of your own occupation for the first 24 months of disability, and thereafter of any occupation you are qualified for by education, training, and experience.
You can take your protection beyond the basics with the following three riders:
- Cost of Living Adjustment Rider – protects the purchasing power of your disability benefits against the effects of inflation.
- Catastrophic Disability Rider – In the event of catastrophic disability, the rider provides an additional monthly benefit that allows for replacement of a greater percentage of income than what is provided by the original policy, not to exceed 100% of income.
- Future Purchase Option Rider – Protects your future insurability by guaranteeing you the right to purchase additional amounts of disability insurance at specified dates in the future.