Disability protection is a Living Benefit that can provide a monthly replacement income if you are disabled for a period of time. Most disability plans can provide income to age 65 or 70. The cost of disability protection varies depending on the risks involved with your line of work. 

Statistics show that if a disability lasts more than 90 days, the average time away from work is 33.6 Months for a 30 year old and 37.2 for a 50 Year old. Coverage can include many types of injuries such as workplace injuries, motor vehicle injuries, and sports injuries (eg: ski/snowboarding, mountain biking, basketball, etc). Many illnesses such as cancer, heart attack, stroke can also be covered. 

So why disability protection?

1. Someone who is 35 years old has a 50 percent chance of disability for 90 days or more before they turn 65.
2. Most people are better financially prepared for their death (usually with life insurance) than for a disability, even though the chances are at least three to five times greater (depending on age) that a disability will occur.
3. Approximately one out of seven people who are between the ages 35–65 can expect to become disabled for five years or longer.
4. Almost 30 percent of the people who are between the ages 35 and 65 will experience a disability that lasts at least 90 days during their working careers.
5. 46 percent of all foreclosures on conventional mortgages are brought about by a disability. Approximately 2 percent are caused by the death of the homeowner.
6. Benefits from an employer plan are taxable. Individual policies, purchased as an individual pay benefits free of income tax.
7. Most people, no matter their income, spend 65 percent to 75 percent of their cash flow. In thinking about this, this means a person should aim toward securing as much disability income insurance they can toward the goal of replacing such income.
8. If you put away 10 percent of your income each year, then simple arithmetic says that one year of being totally disabled could wipe out the 10 years of principal that you put into your savings.
9. The most common chronic conditions listed for limitation on working are back disorders (21 percent), followed by heart disease and arthritis.

Source: MDRT

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