Disability Insurance- Income Protection

Ask yourself, "How will I pay my bills if I become sick or hurt and unable to work?" or "How will I be able to support my family without an income?' Disability insurance could be the means of financial survival. The reality is that disability insurance is the foundation to good financial planning. Without an income for an extended period of time to pay the mortgage, rent, car payment, utilities, food, and other expenses can leave an individual or family in financial ruins without a place to sleep and possibly without a family. We insure our homes, cars, life, health, but often time do not insure our income. The ability to earn an income is our most valuable asset. Why not protect it?

Common myths that leave families unprotected

Myth 1: Social Security will pay if I become disabled.

Fact: 70% of all disability applications are rejected by the Social Security Administration. In fact, according to the 2003 Social Security Handbook, 5 full calendar months must pass before any disability benefits begin from the government. To Qualify, the disability must be one that "can be expected to result in death, or which has lasted or can be expected to last for a continuous period of not less than 12 months." and the disability must prevent the individual from being able to perform any type of gainful employment.

The entire process can take up to 18 months. Can your family survive 18 months without an income?

With so much uncertainty in financial security, disability insurance becomes the foundation of a solid financial plan.

Myth 2: I can sell my assets.

Fact: What would you sell? Assets sold under forced conditions are often sold below market value. No one wants to sell prized possessions.

Myth 3: I can borrow money.

Fact: Who will lend you the money? The bank certainly won't if you have no income coming in and you're not working. Even family and friends can only help so much. How long will that last? Borrowing can be difficult without an income.

Myth 4: I can rely on my spouse's income.

Fact: Today, many families depend on two incomes, The loss of one income can be devastating. Not to mention the emotional stress added.

Additional Facts

Disability is the number ONE reason for mortgage foreclosure.  Statistics show approximately 43% of foreclosures were the direct result of a health & disability while death only caused 3%.  

Workers Compensation takes effect ONLY for an on-the-job injury or illness; however 64% of all disabilities are not work-related. (National Safety Council)

Common Questions

Q. When would I become eligible to receive benefits?

A.  You choose when you would like benefits to begin. The most popular elimination periods are 30, 60, 90, or 180 days.

Q. How long will my benefits last?

A. Your benefits can last 6 months, 1 year, 2 years, 5 years, 10 years or even to age 65, based on your occupation and needs.

Q. Are my benefits paid to me in addition to Worker's Compensation or Social Security?

A. Yes, the base policy benefits are paid directly to you. They are not reduced by the Worker's Compensation or Social Security benefits you may be eligible for. If you choose the optional Integrates Monthly Benefit Rider, those benefits are coordinated with Worker's Compensation and Social Security.

Q. What is the premium for this important protection?

A. The average cost is usually 2-3% of your annual income. But you can adjust the premium to fit your needs based on the elimination period, benefits period and monthly benefits you choose.

Q. If I never use the coverage, will i get any of my premium back?

A. Yes. A very valuable rider is available, the Surrender Value Rider (SVR), which returns all your premiums at age 65, less any claims paid.

Illinois Mutual, headquartered in Peoria, Illinois, is a premier provider of life insurance, annuity and disability insurance products. Founded in 1910, the Company conducts business in 47 states through more than 17,500 independent agents. Through a conservative yet progressive financial investment approach, and consistent management of all aspects of the Company, Illinois Mutual has more than $1 billion in admitted assets, indicating its financial strength, while AM Best recently reaffirmed Illinois Mutual's A- Excellent rating.

Individual Guaranteed Renewable Income Protection GR21 disability insurance policy is guaranteed renewable to age 65, which means that as long as premiums are paid, the policy can not be canceled.

choose a 30, 60, 90 or 180 days, or a one or two-year elimination period, or waiting periods - that is the amount of time between the beginning of the disability and the date you qualify to begin receiving benefits. choose a six month, one, two, five, or ten years, or to age 65 benefit period - that is the maximum length of time you will receive payment from Illinois Mutual for each period of disability. be covered in your own occupation for a specified period of time. The ability to perform specific activities related to your occupation is an important consideration. receive base benefits in addition to Social Security or Worker's Compensation. be covered 24 hours a day, on or off the job. receive tax-free benefits. When the policy premiums are paid by you, the benefits you receive are income tax free. receive four times the monthly benefit to spouse or estate in the event of death during a period of total disability with our built-in Survivor Benefit. waive future premiums and be reimbursed for premiums paid after 90 days of total disability with our built-in Retroactive Waiver of Premium. You can choose an option that: returns the premiums you paid, less claims, at age 65: Surrender Value Rider. guards against potential inflation: Cost of Living Adjustment Rider. provides you with additional coverage as your income increases without medical underwriting: Guaranteed Insurability Rider. pays you extra benefits during the first year of disability - a critical period: First Year Monthly Benefit. provides you with additional coverage if unable to perform certain daily activities: Activities of Daily Living Rider. provides benefit in addition to monthly benefit (reduced by government benefits): Integrated Monthly Benefit Rider. pays you benefits from first day of total disability: Retroactive Injury Benefit. Availability with some features and options availability may vary by state and occupation class.