Charles Marsala Discusses: Disability Insurance Basics

Charles Marsala May 3, 2015 0
Charles Marsala Discusses: Disability Insurance Basics

Disability Insurance, often called DI or disability income insurance, or income protection, is a form of insurance that insures the beneficiary’s earned income against the risk that a disability creates a barrier for a worker to complete the core functions of their work.

It encompasses paid sick leave, short-term disability benefits (STD), and long-term disability benefits (LTD). According to, in the US a disabling accident occurs on average once every second. In fact, nearly 18.5% of Americans are currently living with a Disability, and 1 out of every 4 persons in the US workforce will suffer a disabling injury before retirement.

Rates vary depending upon the age, income, health, and earnings of the insured.  Policies can vary some Features, Benefits, or Riders to consider:

Cost of Living Adjustment * Accidental Death Benefit * Rehabilitation Benefit * Capital Sum Benefit * Presumptive Disability Benefit * Option to increase coverage * Percent of amount you can earn working new career * Age of termination * Premium Waiver after Disability Period * Exclusions such as Pre-Existing Conditions * Benefit Period * Occupation Period * and Elimination Period.

Business Owners should also consider: Business Overhead Expense (BOE) coverage which reimburses a business for overhead expenses should the owner experience a disability. Eligible benefits include: rent or mortgage payments, utilities, leasing costs, laundry/maintenance, accounting/billing and collection service fees, business insurance premiums, employee salaries, employee benefits, property tax, and other regular monthly expenses.

This article is for informational purposes only and is not a complete summary of information needed to recommend any investment. Consult the appropriate professional to determine how this information applies to your unique situation.

About the Author: Charles Marsala is a Financial Advisor with Benchmark Investment Group with Securities offered through LPL Financial, a member FINRA/SIPC. He can be contacted at



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