Long-term disability insurance

No matter how young, healthy or able you may be, no one is immune to disability due to injury or illness.

  • According to the U.S. Social Security Administration1, one in four of today‚Äôs 20-year-olds will experience a disability before they retire.
  • The U.S. Census Bureau2 reports that over 37 million Americans are classified as disabled, and more than 50 percent are in their working years (18-64).
  • About 65 percent of Americans say they could not cover normal living expenses even for a year if their regular income was lost, and 38 percent could not pay normal bills for more than three months3.

Statistics like these make it clear why employees should consider taking steps to protect their income by adding Long-term disability (LTD) coverage to their employee benefit package. LTD insurance protects a percentage of your employment income in the event that you cannot work for an extended period due to a disabling condition. LTD benefits can be used to pay for household expenses and other financial obligations until you can return to work.

physical therapy

Group term life insurance

Group term life insurance available through your employer is a cost-effective, convenient way to provide additional financial security for your family in the event of your death. According to the American Council of Life Insurers, group life represented 41 percent of life insurance policies in force in 2013, providing over $8.2 trillion in protection, and growing4.

This is a general description of the value of group term life insurance. Actual coverage amounts, designated beneficiary and their spending decisions may all impact the below statements. Ask your employer for information about the specific terms and plan options contained in your employee group term life insurance contract.

Where are you in life?

Single

Many unmarried people may believe life insurance is unnecessary when they do not have dependents, especially younger, healthy employees in the early stages of their careers. But the unforeseen can impact anyone at any time.

  • The average cost of a funeral is $6,000 to $10,0005. Life insurance could readily cover these costs so that a family member would not have to bear the financial burden.
  • Life insurance can help pay your debts after your death. For example, if someone has co-signed a loan for you, he or she would be liable for the debt.

Married without children

Even if you have no children to provide for in the event of your death, life insurance will help protect your spouse against known and unforeseen expenses. This can be especially important for young couples just starting out and established dual-income families.

  • Your life insurance would help your spouse deal with funeral expenses that can range from $6,000 to $10,0005 and a variety of other expenses at a very difficult time.
  • Today many couples bring more debt into their marriage, such as student loans. Life insurance can help your spouse meet these financial obligations.
  • If you share financial obligations as a couple, such as a rental lease, mortgage, car note or credit cards, your spouse would be responsible for satisfying those debts.

Family with children

Whether you are expecting, have a toddler entering preschool or a teen preparing for college, having children to care for is one of the most essential purposes of life insurance. In addition to funeral expenses, you want your family to have the resources to manage and maintain their standard of living. Whether you are a single- or dual-income family, you will want to provide a means to cover lost income and/or additional expenses.

  • Your life insurance would help your family deal with funeral and other expenses at a very difficult time.
  • If you share financial obligations as a couple, such as a rental lease, car note, credit cards or mortgage, your spouse would be responsible for satisfying those debts.
  • Your life insurance can help ensure that educational and other developmental needs important to your children will be provided for.
  • Your life insurance can help cover new expenses that may become a necessity, such as day care or after-school care.

Empty nester / retiree

You’re retired. The kids are grown and gone. It’s just you and your partner again. Life insurance can still benefit those who matter to you no matter what your age and circumstance.

  • Your life insurance would help your partner and family deal with funeral costs that average between $6,000 and $10,0005.
  • Your life insurance will help your partner deal with any debts you may leave behind.
  • Life insurance will help provide your partner and family members with financial support that will make life easier at a difficult and challenging time in their lives.

References:

1. U.S. Social Security Administration, Fact Sheet, February 7, 2013
2. U.S. Census Bureau, American Community Survey, 2011
3. Council for Disability Awareness, Disability Divide Consumer Disability Awareness Study, 2010
4. American Council of Life Insurers “Life Insurers Fact Book 2014,” page 65.
5. National Funeral Directors Association,  http://nfda.org/about-funeral-service-/trends-and-statistics.html

 

Disclosure:

Group life and disability insurance coverages issued in the United States in New York are issued by Zurich American Life Insurance Company of New York, a New York domestic life insurance company located at its registered home address of One Liberty Plaza, 165 Broadway, New York, NY 10006. In all states except New York, insurance coverages offered in the United States are issued by Zurich American Life Insurance Company, an Illinois domestic life insurance company located at its registered home address of 1299 Zurich Way, Schaumburg, IL 60196-1056. The information enclosed is intended as a general description of certain types of insurance and services available to qualified customers. Certain products, contract terms and services may not be available in all states or may vary by state.

 

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