One in four American households owns no life insurance, and of households that have life insurance, three in ten are covered for less than one year s total income. Traditionally, group term life insurance has been a pull-through product automatically packaged with group medical coverage. Disability income insurance . Disability income insurance provides a source of income should a person suffer an injury or illness and become unable to work for a period of time. The benefits cans be used to pay for medical expenses not covered by insurance, the mortgage or rent, groceries, and other living expenses.
Disabilities are expensive.
And although individuals in their prime working years are more likely to be disabled than they are to die, most opt not to purchase private coverage, with the mistaken belief that government programs will meet their needs. Unfortunately, Social Security requires a person to be totally disabled for five full months before benefits are paid, and no benefits are provided for short-term or partial disabilities. Workers Compensation, which most employers are required to purchase on behalf of their employees, only pays for injuries sustained while on the job, although two out of three accidents occur away from the job. With an eye on the potential profits, many insurers have entered the voluntary benefits market in recent years. Employers considering offering the benefits to their employees can avoid customer service problems down the road by working only with carriers who have demonstrated success in underwriting, installing, and administering voluntary benefits programs.