1 in 4

Americans will suffer from a disability before reaching retirement age. 2


Is the average long-term disability claims duration. 3


Is the average monthly disability payment from the government. 2



Features and options of a disability income policy.

There are two main types of individual disability income policies: short-term disability, with a maximum benefit period of two years; and long-term disability, with a benefit period ranging from a few years to retirement age.

Each policy offers a variety of features and options:

  • Elimination Period

    The time between the date of injury or diagnosis, until you start receiving benefits. The elimination period you choose can affect your premiums.

  • Residual Benefits

    A percentage of benefits are paid based on a percentage of lost income if you aren’t totally disabled (for example, a 50% loss of income would entitle the insured to 50% of their monthly benefit).

  • Catastrophic Benefits

    Additional coverage may be purchased to cover serious disabilities that are likely to increase your living expenses.

  • Rehabilitation Benefits

    A policy may pay expenses for a rehabilitation program to help the disabled person return to work in his or her own occupation.

  • Cost of Living Adjustment Rider

    Increases the monthly disability amount while on claim either at a fixed percentage or tied to increases of the Consumer Price Index.

  • Future Insurability Options

    A future insurability option can allow you to purchase additional coverage as your income increases.

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Integrate paycheck protection into your financial plan.

If disability insurance is not provided by your employer or if your coverage is insufficient, it may be wise to consider adding it to your financial plan. A First Command Financial Advisor can review your existing coverage, and recommend a policy with the features that make the most sense for you and your budget. Talk to a Financial Advisor today.


Common Disability Insurance Questions


Tools & Advice

1. The Disability Survey conducted by Kelton Research on behalf of Life Happens, April 2012.

2. ssa.gov, The Facts about Social Security’s Disability Program.

3. Chances of disability, according the Council for Disability Awareness