Why Purchase Virginia Disability Insurance?

Most people are simply not prepared for the potentially devastating effects of an extended period of disability.  Ask yourself the following questions:

  • How would you continue to pay your bills if your paycheck suddenly stopped?
  • Are you aware of additional expenses that may be incurred while disabled?
  • If you lost your paycheck today, how would the future of your retirement be affected?
  • Did you know that 3 out of 10 workers will become disabled before retiring?  The average long-term disability lasts 2.5 years
  • Did you know that 1 in 7 people will become disabled for more than 5 years before retirement?

What is Virginia Disability Insurance?

Virginia Disability Insurance is a specialized product designed to replace your income when you suffer an injury or illness that severely impacts your ability to work.  It pays benefits when you can work (partial or residual disability), and it pays benefits when you can’t work (total disability).

You can buy a disability product from any one of a number of carriers.  Every disability policy is different, however.  Some pay benefits where others don’t – it depends on the definitions cited within the contract.  If  you are looking strictly for price, you could seriously short-change yourself.

For example, the definition of total disability can be very significant.  One definition might pay you based on your ability to work in your own occupation, regardless if you have to change jobs and do something else.  Another definition might cite your ability to perform the material and substantial duties of your own occupation, and not be engaged in any other occupation.  A third definition might cite your ability to perform the material and substantial duties of your own occupation, or any occupation where you are deemed reasonably qualified to work by reason of education, training, or experience.

In short, one carrier may pay full benefits, another carrier may pay partial benefits (they offset any income from another occupation), and another carrier may pay no benefits at all.

What is Residual Disability Coverage?

Residual coverage pays benefits to you when you suffer a loss of time and duties, when you suffer a loss of 20% income or more, or both.  If a carrier pays you based on a loss of time and duties, the benefits may change when you return to work.  When you suffer a loss of income, you continue to get paid based on the loss – if you are a salesperson, for example, it may take some time for you to build up your activity to the level you achieved before you became disabled.

A recurrent disability may occur when you suffer a disability, recover, return to work, and experience a relapse of the condition.  The provision in the contract for a recurrent disability is designed to continue benefits without having to meet the elimination period a second time before benefits kick in.

What is an Elimination Period for Virginia Disability Insurance?

The elimination period determines when benefits will first be paid.  There are a number of options, but most people consider 90 days a reasonable period between the onset of the disability and the time the policy pays benefits.  The shorter the elimination period, the higher the premium – the longer the elimination period, the lower the premium.

How Much Virginia Disability Insurance Can I Get?

The amount of the benefit will be determined based on income.  If the premiums are paid by the individual, all of the benefits paid by the carrier will generally be received tax-free.  The amount of the monthly benefit that can be purchased will therefore be calculated as a percentage of income earned at the time of the application.  Premiums are based on the risk level of your occupation – for example, a labor-intensive job such as an auto mechanic would have a different risk class than an office worker.  Special programs are available for some occupations, such as physicians.

The length of time benefits are to be paid will determine premium as well.  You may generally choose a payment period of 2 years, 5 years, 10 years, to age 65, or to age 67 (depending on the carrier).  The longer the period selected for benefits to be paid, the higher the premium.

Additional riders that supplement the benefits to be paid include a cost of living adjustment (so benefit payments don’t remain flat over the years as inflation reduces the value of the income received) and a future increase option (to permit the purchase of additional coverage without evidence of insurability)

How Can I Get a Quote for Virginia Disability Insurance?

There are many factors that determine the quality and value of the disability policy you wish to consider.  If you would like a quote for disability insurance, please CLICK HERE.  You can also give us a call at 1-888-972-0024 or CLICK HERE to send us an e-mail 24 hours a day.