Disability

For most people their most valuable asset is their ability to earn an income. Disability insurance serves to insure an individual’s income stream in the event that they experience a disability resulting from an injury or illness.

Disability insurance can be divided into short-term disability (STD) and long-term disability (LTD).  In addition, the elimination periods and payout periods can vary according to each individual plan. 

In recent years mortality rates have declined due to advances in medical technology, however, morbidity rates have risen as a result of our aging population and because more people than ever before are now surviving after serious accidents or illnesses strike.  There is a far greater chance of suffering a disability of at least 90 days before the age of 65 as compared to the chance of dying.  Many people purchase life insurance to manage the risk associated with premature death but do not consider a disability insurance policy to manage the much more probable risk of suffering from a disability.