Disability Insurance: Why do you need it? If you can not work because of an off-the-job accident or sickness how do you continue to pay your current bills and health care expenses?  

In California, State Disability Insurance will pay an employee 55% of their income up to $840 per week; whichever is LESS for an off-the-job accident or sickness that causes total disability. Can you afford to live on 55% or less of your income? Most people can not, especially considering that if you are on disability, you normally have increased medical expenses. 

Reasons to consider disability insurance:

• “one out of two people age 25 will become disabled for at least 90 days before age 65,” and “For those in their 40s, the chances of becoming disabled are two to three times that of dying.” Disability insurance gives workers income security - Sacramento Business Journal –  February 1, 2002

• Nearly half (48%) of all U.S. bankruptcies are caused by soaring medical bills. The average person was middle-income and had health insurance. - Harvard University study www.law.harvard.edu/news Harvard University, February 3, 2005

• The leading cause of foreclosures are

What to consider when choosing a disability insurance plan:

• Monthly Benefit - Amount of benefit needed to cover your level of income to fill your financial needs. This would be the amount between the SDI benefits and the employee's take home pay.

• Elimination Period - The period of time before the monthly benefit begins to pay. SDI has a 7 day elimination period for both off-the job accidents and sickness.

• Benefit Period - The length of time the benefit will be paid. SDI will pay for up to one year.

At Legacy Benefits & insurance Services, we believe that disability insurance is a very important benefit in protecting your financial future.