Disability Income Insurance
What is it?
Disability income insurance helps replace
lost income when you are unable to
work due to a disability resulting from an illness or accident.
Who needs it?
Disability income insurance helps protect your most
important financial asset – your paycheck – so it should be
an important part of
every family’s planning. Long-term disability is much more common than other
unfortunate circumstances that are commonly covered by insurance.
Consider the
fact that you face a 1 in 100 risk of losing your home
to a fire but a 1
in 4 risk of suffering a long-term disability
.
Despite the odds and the prevalence of long-term disability – nearly 11 million
Americans are receiving
federal disability benefits
– more than 100 million Americans are without private disability income
insurance.
In addition, any disability income insurance you may have through your employer
may very
well be insufficient or contingent on certain circumstances (like
worker’s compensation).
How does it work?
Knights of Columbus disability income insurance policies
provide a monthly benefit amount over the course of a maximum benefit period
(see below) designed to help replace the income that you would have otherwise
received if you were able to work. You are free to use your disability income
benefits in whatever way you see fit – just like you would with your own
paycheck.
Knights of Columbus Disability Income policies also come with special features,
such as the total, partial, or presumptive disability income benefits, which
help protect against special circumstances. As an added bonus, our disability
income insurance policies come with a waiver of premium provision, which waives
your policy’s premiums while you’re suffering from a disability.
What options do I have?
Benefit Period
The maximum benefit period is the longest period for which monthly disability benefits are payable for any one period of a disability. The benefit resets once the disability concludes. You may choose from:
2-Year – Protect your paycheck with two years of disability income payments.
5-Year – Protect your paycheck with five years of disability income payments.
To Age 67 – Protect all your working years
with disability income payments
until you reach retirement age.
Monthly Benefit
Working with your Knights of Columbus field agent, you establish the monthly benefit amount that the policy provides, based on your income and subject to certain limits.
Elimination Period
Disability income insurance policies come with an elimination period, which serves as your deductible or out-of-pocket amount. You can select a 30, 90, or 180-day elimination period, after which time your benefits will begin to be paid.
Additional Features and Benefits
A number of special features and benefits – often called riders – are available on Knights of Columbus disability income insurance products. For instance, the catastrophic disability rider provides an additional monthly benefit in the event of a catastrophic disability, and the cost of living adjustment rider helps your monthly benefit keep pace with inflation during a long-term disability.
Contact your Knights of Columbus field agent today to learn more about our disability income insurance products, and about the safety and security that we can help provide.
Council for Disability Awareness
U.S. Social Security Administration Office of the Chief Actuary
U.S. Group Disability Rate & Risk Management Survey 2012, Gen Re