At age 32, the chance of being disabled for 90 days is 6.5 times greater than the chance of death (Source: National Association of Insurance Commissioners) 
READ MORE
In the 1st year following a paraplegia, living expenses average $259,531 per person (Source: National SCI Statistical Center, 2005) READ MORE
Disability Insurance News
June 12, 2006: Execs Need Supplemental Disability Income Insurance
Those who work in executive-level positions are accustomed to risk and challenges. They make hard decisions and see opportunities where others can't. While risks may be good for business, they are hardly good for building a secure future.
According to a June 12, 2006, article on The National Underwriter Life and Health Web site, executive-level workers are in strong need of supplemental disability insurance.[1]
Though many have a policy through their employer, chances are it is not enough to cover a high-earner's salary. And, regardless of income level, some factors of life cross all lines – such as illness and injury.
According to JHA, a disability reinsurance, consulting and research firm located in Portland, Maine, older workers are up to five times more likely to submit claims for short- or long-term disability and are absent longer than the average employee. Additionally, a Harvard University study conducted in February 2005 cited serious illnesses as the cause for 46.2 percent of all personal bankruptcies, despite the fact that most of the individuals surveyed had health insurance.
Supplemental disability insurance gives executives an individual, portable policy that can stay with them throughout their careers, according to the article. It can also help close the gap with their work insurance, including coverage for bonuses and commissions.
Some carriers even offer coverage for retirement contribution protection for qualified plans, where the policyholder's contributions and the employer's matches continue to be made in the event of a disability, cites the article. For those who suffer a long-term disability, this coverage may mean the difference between an early and late retirement.
Another item worth consideration is a policy that is non-cancelable, has a level premium for the life of the contract and that participates with other in-force policies.
References
- Roller, Kevin N. "Execs Need Supplemental Disability Income Insurance," The National Underwriter Life and Health Web site, June 12, 2006. http://www.lifeandhealthinsurancenews.com