Individual Disability Options | Group Disability Options

Disability Insurance

It's estimated that 30 percent of Americans entering the work force today will become disabled before they retire. The primary causes of long-term absences are back and neck injuries, heart disease, cancer and other illnesses. And in recent years, stress and anxiety has become a growing cause.

Yet how prepared are Americans to weather lost income due to a disability? Not very:

• 60% of adults don't have any savings for emergencies
• 38% of working Americans report that they couldn't pay their bills for three months if they lost employment income
• 71% of Americans said they would find it difficult to meet current financial obligations if their next paycheck was delayed one week

Disability insurance protects a worker's ability to generate income. It's closely tied to Life Insurance – try to imagine how you would pay your bills if the car accident or heart attack doesn't kill you? Many Americans think (or hope) that Social Security or Workers' Compensation will replace their income.

The average monthly benefit paid by Social Security Disability Insurance (SSDI) in 2010 was $1,065. And more than two-thirds of initial SSDI claim applications were denied in 2009. Workers' Compensation is even tougher to qualify, as about 90% of disabling accidents and illnesses are not work-related.

Ritch Insurance works with businesses to find the best coverage. We also can help find the right disability insurance for individuals, protecting your lifestyle and long-term savings in case of a disability or illness. If you're not covered by your employer, individual insurance is an excellent option.

Individual Disability Insurance Options

Disability insurance is available to individuals, although premiums and benefits vary widely depending on the occupation, state, and coverage (amount paid out and for how long). Another key consideration in a policy is how broad (or narrow) "disability" is defined. This coverage is most popular for self-employed individuals or those working for companies that don't offer it.

In simple terms, if you owned a machine that printed money, then undoubtedly, this machine would be insured. It's the same way if an individual is the family bread winner - he or she needs to be insured by not only life insurance but disability insurance, too. Applying for disability insurance includes a medical exam, interviews and a fairly lengthy application.

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Group Disability Insurance Options

Short-Term Group

Many workers have difficulty choosing between short- or long-term coverage. Short-term disability policies are insurance against less serious injuries or recoverable illnesses (it could be described as "sick leave"). This short-term insurance is usually designed with a one-two week waiting period, and a three-six month benefit period. This means after about two weeks of a being "disabled," payments will start arriving. In most cases, short-term coverage is in place to pay benefits during the waiting period before long-term coverage kicks in.

Long-Term Group

As the name implies, long-term disability insurance is protection against financial ruin, as payments usually start after 90 days and can continue for decades, until retirement age. No one expects to be unable to work and unable to generate income. This insurance helps seriously injured or ill individuals to meet their financial responsibilities and hopefully maintain their lifestyle.

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