Disability Insurance :: Petretti & Associates, Inc.

A Disability can happen to you even if you are careful. Even if you wear your seatbelt, look both ways before crossing the street, and make sure your smoke detectors are always working. No matter how much you prepare, accidents can happen - a sports injury, car accident, illness, broken limb, or problem pregnancy. Many situations can cause you to not be able to work at your usual job. This would result in a loss of income.

From the "Why Disability" booklet (by National Underwriter):

· If you are under age 35, you have a 1 in 3 chance to be disabled for at least six months during your career.

· Men have a 43% chance of being seriously disabled during their working years.

· Women have a 54% chance of being seriously disabled during their working years.

· Even at age 42, you are 4 times more likely to be seriously disabled then you are to die during your working years.

Leading causes of disability in the U.S., by frequency:

1. Back and neck disorders
2. Diseases of the heart
3. Muscular/arthritic
4. Malignant tumors
5. Psychiatric

Leading causes of disability in the U.S., by dollars paid:

1. Diseases of the heart
2. Back & neck disorders
3. Psychiatric
4. Neurological disorders
5. Muscular/arthritic

Now consider what it would mean to you and your family if you were disabled. How long can you afford to live without an income? How long can your savings hold out?

Reasons to buy Disability Insurance now:

· Buying at a younger age means you will have a lower premium.

· Premiums have doubled during the past 10 years, buying now will guarantee today’s rates for the life of the policy - premiums could increase just as dramatically in the next 10 years.

Are you relying on an employer sponsored group long-term disability plan? Employer sponsored coverage is sometimes not the best available. It might only pay benefits if you are totally disabled. It is a good idea to learn as much as you can about your group coverage. Personal disability insurance is also completely portable, unlike a group plan.

A quality individual disability plan should have the following features:

· Non-cancelable coverage: As long as you pay the premiums on time the policy can not be canceled. The premiums are also guaranteed until age 65 or 67.

· Own occupation: This type of disability insurance policy pays benefits if you can’t perform the material of substantial duties of your occupation because of sickness or injury. Your occupation means your regular occupation at the time you become disabled. You are considered totally disabled, and receive benefits accordingly, as long as you are not able to work in your own occupation even if you are performing unrelated duties in a different occupation. (Definitions may vary by policy. See specific language for exact definition.)

· Residual: Disability benefits are based on a percentage of lost income. The benefit is set upon pre-disability earnings.

· Ability to increase coverage: Your insurance needs to be able to keep up as your income increases. Policies should contain a rider for increasing coverage in the future. This is often called a Future Insurability Option (FIO) or a Future Purchase Option (FPO).

Please Contact Us to determine which disability policy would be right for you.