How much does disability insurance cost?

There is no cookie-cutter answer to this question. Disability insurance is priced according to the elimination period, benefit period, age, occupational class, and benefit amount. It can be customized to your wants and needs. It would be safe to say that you will pay between 1-3% of your annual income for a quality DI plan. Remember that your ability to work is one of the most valuable assets that you have, so leaving it unprotected can often be a foolish choice.

Will clients medical histories prevent them from qualifying for disability insurance?

Disability underwriting takes many factors into account. Unlike life insurance underwriting, DI underwriting is not looking at the likelihood of your passing away, but the probability that you will be unable to perform the duties of your job. DI underwriters are looking for many things, some of which include neck and back problems, mental and nervous condition counseling, and the use of anti-depressants. Even with challenging medical histories, carriers are often willing to limit the benefit period or extend the elimination period to allow you to purchase DI.

What are the odds of becoming disabled?

It is far more likely that you will suffer a disability than be in an auto accident or have a house fire. Statistics indicate that the chances of suffering a long-term disability of 90 days or more before an individual reaches the age of 65 are unbelievably high: a 25 year-old has a 52% chance of becoming disabled; a 35-year-old has a 48% chance; and a 50-year-old has a 34% chance. Unfortunately, the odds are not in your favor. Perhaps it is time to start thinking about Disability Insurance.