Even though the most common use of disability insurance is to cover personal income loss, disability insurance can also be used to cover the financial loss to a business in case a key person should become disabled or to fund a disability buy-sell agreeement. The loss of a key person should be covered in case of the death of the key person (go to lifeinsure.com for more info on that) but also can be covered in case of the disability of that key person. Buy-sell agreements should be funded with life insurance but also with disability insurance in case of the permanent disability of one of the owners especially when the owners are working stockholders or partners. Such coverage could be essential to the continued success of the business if one of these individuals should become disabled. Contact a business disability insurance expert at protectyourincome.com 866 691 0100 to discuss this specialized subject.

What are the statistics that someone will be disabled at different ages? The likelihood is higher than most people think. The odds that someone will become disabled for more than 90 days before age 65 are: Age 30 - 1 in 3 Age 40 - 3 in 10 Age 50 - 5 in 22. Having disability insurance is a crucial part of financial planning. After all, financial planning is about the conservation and growth of assets. One’s ability to earn an income is one of if not the largest asset one should protect. Learn more at the ProtectYourIncome.com site.

The most obvious and dramatic cost of waiting or delaying to take a disability insurance policy is the unfortunate possibility of becoming disabled and losing your income without having insurance. Statistics indicate that it is more likely to become disabled for more than 90 days at any age from 20 through 65 than it is to die.
Between the ages of 35 and 65 three out of ten people who are actively at work will become disabled for 90 days or more
Nearly one in five will become disabled for five years or more before age 65.
So, the first cost of waiting is the “rolling of the dice” with your financial position. What about the pure cost, financially, of waiting? Since the charge for disability insurance premiums is based on your age and occupation at the time you take a policy, the older you are when you take it out, the more you pay per year. You could say that if you wait you save the premium that you didn’t pay. That idea may not agree with the facts. Here’s an example: Let’s say William, a physician, age 30, could get disability insurance with a monthly benefit of $5,000 per month for a premium of $1784 per year guaranteed to stay at the same premium until age 65. The total premiums paid would be $62,440 over those years. If he waited until age 45 to start the policy, he would pay $3,356 per year for 20 years for a total of $67,120. By waiting William paid out more cash in total and did not have the coverage for the 15 years.
If William became permanently disabled at age 35 and had the disability insurance, he would have collected $1,800,000 by age 65. Looking at it another way, if he had waited and not taken the policy, he would have lost $1.8 million.
Don’t delay. This is important to you. Learn rmore.

Disability insurance is a key if not the key in risk planning and financial planning. Why is this factual? In most cases one’s ability to earn an income is probably one’s largest financial asset. It’s statistically more likely that a person will be disabled then dying before age 65. The numbers bear this out. Before age 40 it is at least 2 times or more likely for someone to have a long term disability (90 days or more) than the likelihood of dying. At age 45 it is 1.7 times more likely and even at age 50 it is 1.5 times more likely. For the exact ratios comparing death vs. disability and for other important stats go to protectyourincome.com and click the Disability Statistics on the right column.