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Disability Income Insurance
If you're like most people, you depend on your paycheck to pay your monthly living expenses.
But what would happen if you had a disabling accident or illness and could not work?
How would you...
- replace your income?
- make your monthly rent or mortgage loan payments?
- buy your groceries?
- make your car payments?
- handle the rest of your day-to-day living expenses?
- provide for your children's education?
- save for retirement?
| Most people don't realize the risk of becoming disabled, permanently or temporarily, at some point in their lives. But the reality is...
| If you are now age... |
The risk of becoming disabled for over 30 days before age 65 is... |
| 25 |
77% |
| 30 |
75% |
| 35 |
72% |
| 40 |
69% |
| 45 |
64% |
| 50 |
58% |
| Source: 1985 Commissioner's Disability Income Table |
When evaluating the chances of disability, you should carefully consider sources of available funds:
My employer covers me: How long would the business continue to pay you? How much would it pay you? When would your employer have to hire a replacement? Could the business afford to pay both?
I'll use my savings: If you saved 10% of your income each year, one year of total disability could wipe out 10 years of savings. Can you afford that?
I'll get a loan: Without an income, who will lend you money?
My spouse works: Can your spouse earn enough and be partner, parent, private nurse, and employee -all at the same time?
I'll sell my investments: Will a sale under forced conditions bring a true value? What will their value be at the time you are disabled?
I can collect Social Security: You cannot collect benefits until the end of the fifth full calendar month of total disability and only if it is expected to last 12 months or more. What will you do if your disability doesn't meet those requirements? Even if it does, can you wait six months for payment?
I'll count on family, friends, or charity: Would these sources have funds for you to use? Do you want to depend on them?
Make a plan for income replacement
A State Farm Disability Income policy can help keep you financially stable during difficult times by paying a monthly income, directly to you, when you are sick or hurt and unable to work. It is great as a primary income replacement plan or as a supplement to your salary continuation or group disability plan.
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You have the option to choose the combination of coverages* that best meet your needs by selecting:
- The amount of coverage you need - flexible monthly benefit options.
- The length of time you must be disabled before benefits begin - 60, 90, 180, 365, or 730 consecutive days.
- The length of time benefits are paid to you - one year, five years, or to age 65.
| | Policy benefits
Monthly income amount: After you have been totally disabled because of injury or sickness for the elimination period selected, State Farm begins payment of the monthly income amount while you are totally disabled, up to the maximum benefit period you chose.
Partial disability: If you remain partially disabled following a period of total disability, State Farm will pay 50% of the monthly income amount for up to six months.
Waiver of premium: After benefits have been payable for three consecutive months, the subsequent premiums falling due are waived (paid by the Company) while your disability continues.
Rehabilitation expense: If during a period for which total disability benefits are paid, you participate in a formal rehabilitation program, approved by the Company, State Farm will pay for the costs actually incurred for tuition, books, and equipment, up to six times the monthly income amount or $10,000, whichever is less.
Additional purchase option: On the fifth policy anniversary, you will have the option to purchase an additional disability income policy without evidence of insurability. Age, financial, and occupation class requirements must be met for issue and participation limits in effect on that date.
Optional benefits**
Social Security Supplement Rider: Pays an amount in addition to the monthly income for total disability during the first six months that disability benefits are payable. To continue receiving benefits beyond six months, you must provide documentation that you have applied for Social Security disability benefits. Benefits for the seventh and subsequent months will be reduced by any benefits payable by Social Security.
Cost of Living Adjustment Rider: Provides for an additional benefit based on the Consumer Price Index (CPI-U) after benefits for total disability have been payable for twelve consecutive months. The Cost of Living Adjustment Rider is limited to a 5% annual maximum increase and an overall maximum equal to the monthly income amount selected.
Note: This information provides only a brief explanation of coverage. It is not a contract. Modifications are applicable in some states. This policy may not be available in all states. Click here to view policy exclusions and limitations. A complete statement of coverage is found only in the policy (policy series 97052). Renewal premiums will increase periodically depending on your age. Policy is guaranteed renewable to age 65. For additional details on coverage and cost, or to apply, contact a State Farm agent.
* Combinations of coverages are subject to underwriting guidelines, the benefit period chosen, and your occupational class.
** These riders are available at additional cost.
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