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Insurance is an essential component of a sound financial plan. Health, life, home, and auto insurance are probably the main types of coverage that come to mind. Once you have these are taken care of, it’s easy to forget about other types of coverage you may need as well.
Meet Breeze, the Online Disability Insurance Agency for the Modern Workforce
Disability insurance covers your greatest asset — the ability to earn the income you rely on to live your life. Yet it’s often overlooked due to:
- Misconceptions about how it works and the chances of becoming disabled
- An archaic buying experience that is time-consuming and confusing.
Fortunately, that’s where Breeze comes into play. As the first fully-online disability insurance agency, Breeze is dedicated to making coverage more accessible and educating workers about the need for income protection.
How Disability Insurance Works
Putting a disability insurance plan in place protects your source of income from injuries and illnesses. If you become too sick or hurt to work for an extended period of time, disability insurance can replace a portion of your monthly earnings while you get back on your feet. The benefit amount you receive is treated as tax-free income that you can use to pay bills, buy groceries — whatever you need to maintain your lifestyle.
There are two main types of disability insurance.
- Long term disability insurance covers serious injuries and illnesses lasting longer than three months (including permanent conditions).
- Short term disability insurance covers temporary injuries and illnesses lasting less than three months.
Both types of coverage can be obtained individually and/or as part of a group, such as an employer-sponsored plan.
Now that you have a better understanding of how disability insurance works, the question becomes: Do you actually need it?
The Facts About Disabilities
Disability insurance is often overlooked because you don’t think you’ll ever need to use it. But that couldn’t be further from the truth. Just take a look at the following statistics about the likelihood of disabilities and their financial impact.
- 25% of today’s 20-year-olds will experience a disability in their careers before retirement (U.S. Social Security Administration, Fact Sheet, 2018).
- 70% of working Americans couldn’t make one month without a paycheck before experiencing financial hardship (Life Happens survey, 2018).
- 90% of long-term disabilities result from illnesses rather than accidents (Council for Disability Awareness, 2018).
All things considered, the chances of a disabling event happening to you may be much higher than you think. This underscores the need for disability insurance.
Budgeting for Disability Insurance
The cost of disability insurance depends on a number of personal factors and policy choices, as well as your job occupation. The younger and healthier you are, the lower your monthly premiums will be.
You can typically expect to spend between 1 percent and 4 percent of your annual income on disability insurance coverage. Another rule of thumb is that you should expect to pay between 2 percent and 6 percent of your policy’s monthly benefit amount in premium.
To calculate your coverage needs, take inventory of your monthly obligations, necessities, and investing activities. Obligations include payments on your mortgage/rent, student loans, credit cards, and any other monthly debt obligations. Necessities include utilities, groceries, gas, and any other recurring expenses for you and your dependents.
Breeze is redesigning long term disability insurance for the modern workforce. This means building a more accessible consumer experience that is quick, convenient, and affordable. Here’s what makes Breeze different.
- Simple online experience: Get a personalized disability insurance quote and apply online is as little as 15 minutes.
- Dedicated customer support: No commissioned sales agents, just a team of income protection experts that are here to help you find what you need.
- Affordable coverage options: Individual long term disability insurance plans start as low as $9 per month.*
Just like any other type of insurance, disability insurance requires you to be proactive now, not reactive when it’s too late. That’s why Breeze is dedicated to helping American workers protect their hard-earned income in an efficient, transparent manner.
Protect your income by visiting Breeze today!
* Pricing for a 25-year-old male, 5-year benefit period, 90-day waiting period, and $1,000 monthly benefit with supplemental disability income rider (SDIR).
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