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Disability Insurance

Disability Insurance 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. According to the Commissioner's Disability Income Table, the risk of becoming diabled for over 30 days before turning age 65 is 77% if you're age 25, decreasing to a 58% chance if you're age 50. It is great as a primary income replacement plan or as a supplement to your salary continuation or group disability plan.

Determining the Need for Disability Insurance
The key questions to ask are, if you were to become disabled, how would you:

Replace your income?
Make monthly rent or mortgage payments?
Buy groceries?
Handle the balance of your day-to-day expenses?
Provide for your children's education or welfare?
Save for retirement?
Questions EVERY Diversified Investment Advisors should ask you...
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Potential Sources of Funds in the Event of Disability
Employer - 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?

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?

Loan - Without an income, who will lend you money?

Investments - Will a sale under forced conditions bring a true value? What will their value be at the time you are disabled?

Spouse - Can your spouse earn enough and be partner, parent, private nurse, and employee -all at the same time?

Friends or Charity - Would these sources have funds for you to use? Do you want to depend on them?

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?

Disability Insurance - as referenced above, disability insurance 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.
Disability Policy Options
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.
Disability Policy Benefits
Monthly Income Amount - After you have been totally disabled because of injury or sickness for the elimination period selected, most insurance companies begin 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, some insurance companies 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, approved rehabilitation program, the insurance company 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 (depending upon the insurance company's policy), you may 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.

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% (depending upon the insurance company's policy) annual maximum increase and an overall maximum equal to the monthly income amount selected.
Shoreline's Competitive Edge
Whatever your need, protecting against the costs associated with disability is an important choice. There are many plans and competitive rates Shoreline Wealth and Investment Management can assist you in obtaining.

For more information:
If you'd like more information about how diversified investment advisors can help you achieve your financial objectives through personalized wealth or retirement and risk management strategies, please contact us. We welcome the opportunity to discuss your unique needs and how we may best meet them.

This page (formatted for versions 10.0 and higher of Internet Explorer) is updated regularly so check in from time-to-time to see new articles and updates. You can click on any underlined words on each page to see a specific wealth management topic in the left margin of each page.

Charles M. Bloom, Registered Principal offers securities and advisory services through Centaurus Financial, Inc. - Member FINRA and SIPC - 775 Avenida Pequena, CA, 93111 (mailing address: 3905 State Street Suite 7173, Santa Barbara, CA, 93105) - CA Life Insurance License No. 0A52786 - Centaurus Financial, Inc. and Shoreline Wealth & Investment Management are not affiliated companies.

The information contained in this web site is neither an offer nor solicitation of any security or service.


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