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Life Insurance Awareness Month 2023

Life Insurance Awareness Month 2023

Life Insurance Awareness Month (LIAM) is a campaign that occurs every year during the month of September. The nonprofit organization, Life Happens, sponsors LIAM—a month-long campaign dedicated to helping consumers take personal financial responsibility through the ownership of life insurance and related products. This is the perfect time to take full advantage of LIAM resources to get educated about life insurance. What better time than now to get started on securing your future!

Get Educated: Statistics and Studies

Talk with your financial professional about life insurance.

Benefits of Life Insurance

Life insurance is an essential part of any financial plan. While life insurance provides security and protection for your loved ones when you are no longer here, it can also provide a reservoir of cash in some policies. Strategically planning for your future with life insurance ensures that you will have a well-rounded plan for years to come. If plans change, you can buy another policy or cancel an old one.

Protection

Protection

Wealth Creation

Wealth Creation

Savings

Savings

Tax Savings

Tax Savings

Who needs life insurance?

Life insurance is an essential part of any financial plan. While life insurance provides security and protection for your loved ones when you are no longer here, it can also provide a reservoir of cash in some policies. Strategically planning for your future with life insurance ensures that you will have a well-rounded plan for years to come. If plans change, you can buy another policy or cancel an old one.

Living life with life insurance means that you can fully enjoy your time here without worrying about the what-ifs in life, and by providing peace of mind with life insurance, the burden of the unknowns is relieved from your shoulders.

  • Homeowners

First-time homeowners carry a lot of debt. If you were to pass away while still paying for your mortgage, how would your loved ones pay for the additional cost of owning a house? Life insurance provides protection from life’s unknowns and big what if’s. Instead of your family struggling to pay for your funeral payments, credit card debt, car payments, and mortgage, the insurance company will provide a benefit amount upon your passing which can pay for the entire amount of the house or condo and may even cover your additional debts.

  • Newlyweds

Married couples and life partners are likely to both work and contribute to the household income. What happens when one person passes away and the household income decreases, but the same amount of bills need to be paid, plus funeral costs? The survivor is left with the burden of the loss of a loved one and the harsh reality of increased financial obligations. A life insurance policy’s death benefit can be spent in any way the beneficiary likes. Proceeds from a life insurance policy would help the surviving partner maintain their lifestyle by helping to pay bills and debt including mortgage payments, car payments, student loans, and credit card debt.

  • New Parents

Taking on the new role of parenting, or adding an extra bundle of joy in your life can be both challenging and rewarding. Having a child can also be quite expensive with the typical American family spending $233,000+ raising a child from birth to age 18. For a middle-income family, housing accounts for 29% of costs, 18% for food, 16% for child care/education, according to the USDA. 

Life insurance provides an income should one, or both parents pass away. The life insurance benefit can be used for costs of living including food, housing, child care, and education. If you are a single parent, the life insurance benefit is a financial lifeline for your child should you pass away. 

See this Bankrate guide that covers which financial expenses soon-to-be parents can expect. It includes a breakdown of the different costs to consider when raising a child.

  • Highly-paid employees

Many employers now offer group life insurance with a few thousand dollars of benefit to cover a small funeral cost, sometimes more. However, this is often not enough coverage especially if you have a family. If you are looking to move jobs, your group life insurance coverage will likely end creating a gap in coverage for you and your loved ones. Having your own individual life insurance policy means you won’t have a gap in coverage when you switch jobs.

If you’re starting your own business, a “key person” insurance coverage will help to protect your business by providing a benefit to replace the lost income and pay for business expenses in case of death or disability. Valued partners and employees have an enormous impact on your business both positively, but also negatively if they cannot perform their job. With a “key person” coverage you can use the benefit to buy out a partner without depleting company cash reserves, or use the cash to pay for expenses and buy time to fill in the gap.

  • Individuals Looking Towards Retirement

Life insurance is important in creating a well-structured and well-rounded retirement plan. Permanent life insurance policies provide a reservoir of cash that you can use during retirement through the cash value component. Life insurance is also used for estate planning and may help your beneficiaries pay taxes and legal fees. Consult with your financial advisor on the best plan for your retirement needs.

  • Caregivers

The aging population is living longer, and many people in the United States rely on family members to care for them. This puts an enormous financial and emotional burden on loved ones as they try to cope with their ailing relatives. If you’re providing care for an aging relative, a life insurance policy is essential in making sure you have a backup plan to protect their continuity of care if you pass away.

  • Divorcees

Ending a relationship is a good time to reevaluate your existing life insurance before a divorce is finalized. If your current life insurance coverage lists an ex as a beneficiary, consider excluding them from your list. Don’t forget to review your beneficiaries after splitting up.  In addition, consider purchasing your own life insurance policy, or adding a new one.

FEBRUARY

Insure Your Love 2023

The purpose of life insurance is to provide financial security and peace of mind. It ensures that loved ones aren’t left with a financial burden after the policyholder passes away.

February is an important month to recognize those we love, and it can also serve as a helpful reminder to look into life insurance plans. Throughout the month of February, Life Happens, a nonprofit organization aimed to give unbiased information to help make smart insurance choices, hosts Insure Your Love Month.

Life insurance carriers are also emphasizing the importance of life insurance policies for anyone who loves someone else in their life. Take the time to discuss with your family or clients about life insurance – whether this be a family member, partner, friend, or customer – life insurance offers protection for loved ones if anything were to happen. Talking about life insurance with your clients is essential in order to ensure their loved one’s financial security no matter what life throws at them.

Life Insurance Resources a list by Occidental Underwriters of Hawaii

LifeHappens
Carrier Handouts
Media Coverage

Life Insurance Stories

The Kazemier Story

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Long-Term Care Awareness Month

Long-Term Care Awareness Month 2022

What is Long-Term Care Awareness Month?

November is Long-Term Care Awareness Month (LTCIAM), dedicated to making sure your clients and prospective customers are informed about the need for LTC. We’re giving you the tools you need to talk to your clients about long-term care insurance.

Most people think they won’t need long-term care, but the fact is that 70% of Americans over age 65 will need it at some point in their lives. That’s why it’s important to plan ahead and have a policy in place.

We know it can be difficult to think about, but planning for long-term care is one of the most important things you can do for your clients. Our tools make it easy – so there’s no excuse not to get started today. Use our free long-term care planning tools today and work with us this month to help your clients get the coverage they need.

 

Grab & Go Resources

What You Need to Know about LTCi & Hybrid Policies

What You Need to Know about LTCi & Hybrid Policies

How Asset-Based LTC Works

How Asset-Based LTC Works

Income Tax Deductions for Tax-Qualified LTCi

Income Tax Deductions for Tax-Qualified LTCi

Carrier Specific Resources

Mutual of Omaha

Ready for Easier Access to Online Guides and Marketing Materials?

Nationwide
Start talking about LTC during Long-Term Care Awareness Month.
OneAmerica
CIAM

Critical Illness Awareness Month 2022

What is Critical Illness Insurance?

Critical illness insurance is a form of insurance that pays out a lump sum benefit if you are diagnosed with a covered critical illness. It is similar to regular life insurance, but has some key differences.

How Does Critical Illness Insurance Work?

The main difference between critical illness and regular life insurance is that the policyholder must be diagnosed with one of the listed illnesses before they can receive any benefits from their policy. The amount that you get paid out varies depending on the type of policy you purchase, as well as what kind of coverage you choose for each illness listed in your policy.

For example, if you purchased a policy and were diagnosed with heart failure, you would receive $50,000 or more depending on how much coverage you chose for that specific illness.

Critical Illness Insurance is More Than Just Cancer Coverage

Covered illnesses include cancer, stroke, heart attack and organ failure. Some policies cover multiple illnesses and some are specific to certain illnesses. In this article we’ll take a look at what these benefits entail.

Critical illness insurance is a valuable way to protect your family’s future from the devastating financial impact that an unexpected, critical illness can have—far more than regular life insurance. There are many different types of critical illness policies, each with their own benefits and limitations. You should talk to a financial advisor to find the best policy for you.

How can I get Critical Illness Insurance?

If you’re interested in getting critical illness insurance, we can help! Here’s what you need to know:

First, get a quote from an approved insurance agent. That way, you’ll know the exact cost of the policy and be able to compare it with other quotes. You’ll also have an idea of what kind of coverage is available and what costs will be covered by your policy.

Next, check the policy details to make sure it is suitable for you. Does it cover all of your needs? Is there anything that might cause problems later on down the line? This is a good time to ask any questions about exclusions or limitations so that there aren’t any surprises later on down the road.

Then, ask about any exclusions or limitations. For example, if you’re concerned about cancer but aren’t sure whether your policy covers that specific diagnosis, ask about exclusions before signing up for coverage! It’s always better to know these things ahead of time so that there are no surprises once everything goes through—and so that you can make an informed decision about whether or not this policy is right for you!

Finally, make sure the policy covers the critical illness!

It’s important to note that most critical illness insurance policies pay a lump sum benefit upon diagnosis of a covered critical illness. We offer critical illness insurance with a lump sum benefit upon diagnosis of one of our covered critical illnesses. The lump sum benefit can be used to pay for medical bills, a mortgage, a car or an upcoming vacation.

table with notepad coffee

LIAM Carrier Resources & Marketing Tools

“Life Insurance – An Easy Decision.”

Each September, our industry comes together to promote Life Insurance Awareness Month (LIAM) as a reminder to all Americans of the important role life insurance plays in their financial security. Life insurance ensures families and businesses can have a bright future. 

Making the Most of Life Insurance Awareness Month

Every year, we’ll gather marketing resources and materials from industry leaders to help you make the most of Life Insurance Awareness Month. Use the tools and resources on this page to access hundreds of email templates, social media posts, videos, websites, and more!

 

Marketing Tools and Carrier Resources

Last updated: 8/26/2022 at 9:40 am

LIAM 2022 banner (1200 × 300 px)

Life Insurance Awareness Month 2023

 

We’re committed to providing you with all the information you need to be an informed and savvy consumer, and we wanted to share some of the facts and figures from Life Insurance Awareness Month.

 

What is Life Insurance Awareness Month?

Life Insurance Awareness Month (LIAM) is a campaign that occurs every year during the month of September. The nonprofit organization, Life Happens, sponsors LIAM—a month-long campaign dedicated to helping consumers take personal financial responsibility through the ownership of life insurance and related products. This is the perfect time to take full advantage of LIAM resources to get educated about life insurance. What better time than now to get started on securing your future.

Get Educated: Statistics and Studies

 

What is LIMRA’s Insurance Barometer Study?

The purpose of LIMRA’s Insurance Barometer Study is to provide a snapshot of how Americans think about life insurance and how they feel about their own coverage. For each survey, LIMRA interviews roughly 1,200 consumers who have either purchased life insurance or are considering purchasing it. They ask questions about what kinds of coverage people currently have (or don’t have), why they bought it (or didn’t buy it), and where they learned about the product.

 
 

LIMRA Insurance Barometer Study results

The study found that half of Americans don’t have life insurance and that COVID has made it more likely that they will purchase life insurance within the next year.1  When looking at key groups, interest is highest among Millennials (44%), Black Americans (38%), and Hispanics (37%). The purchase intent for life insurance also reached a record high this year, signaling more people are aware of the product and its need.

graphic_Barometer_consumer_financial_impact_2022_1200x675_branded

Key Market: Millennials

Millennials, ages 24 to 40, are at a time in their life when they need to be thinking about life insurance. They are typically married, have children, and enjoy a sufficient salary with the majority having more than $100,000 in household income.2  Yet more than half of millennials have no life insurance coverage at all, putting their loved ones at risk of financial hardship should they die unexpectedly. Misconceptions about insurance often deter them from purchasing the coverage they say they need.

The 2022 Insurance Barometer Study finds that more than one-third of millennials say they don’t own life insurance because it is too expensive.3  In reality, the cost of life insurance could end up being less than a cup of coffee a day. In general young, healthy adults are most likely to not only qualify for coverage but also be able to secure the most affordable rates.

“Nearly half (47%) of millennials (34 million adults) say they need (or need more) life insurance.” – LIMRA Barometer Study 2022

This is where education about life insurance and the assistance of an insurance agent or financial professional comes in. They will explain how to select the right type of coverage for your circumstances and discuss options that can provide protection for your loved ones should you pass away.

Benefits of Life Insurance

Life insurance is an essential part of any financial plan. While life insurance provides security and protection for your loved ones when you are no longer here, it can also provide a reservoir of cash in some policies. Strategically planning for your future with life insurance ensures that you will have a well-rounded plan for years to come. If plans change, you can buy another policy or cancel an old one.

Protection

Protection

Wealth Creation

Wealth Creation

Savings

Savings

Tax Savings

Tax Savings

 

Who needs life insurance?

Life insurance is an essential part of any financial plan. While life insurance provides security and protection for your loved ones when you are no longer here, it can also provide a reservoir of cash in some policies. Strategically planning for your future with life insurance ensures that you will have a well-rounded plan for years to come. If plans change, you can buy another policy or cancel an old one.

Living life with life insurance means that you can fully enjoy your time here without worrying about the what-ifs in life, and by providing peace of mind with life insurance, the burden of the unknowns is relieved from your shoulders.

  • Homeowners

First-time homeowners carry a lot of debt. If you were to pass away while still paying for your mortgage, how would your loved ones pay for the additional cost of owning a house? Life insurance provides protection from life’s unknowns and big what if’s. Instead of your family struggling to pay for your funeral payments, credit card debt, car payments, and mortgage, the insurance company will provide a benefit amount upon your passing which can pay for the entire amount of the house or condo and may even cover your additional debts.

  • Newlyweds

Married couples and life partners are likely to both work and contribute to the household income. What happens when one person passes away and the household income decreases, but the same amount of bills need to be paid, plus funeral costs? The survivor is left with the burden of the loss of a loved one and the harsh reality of increased financial obligations. A life insurance policy’s death benefit can be spent in any way the beneficiary likes. Proceeds from a life insurance policy would help the surviving partner maintain their lifestyle by helping to pay bills and debt including mortgage payments, car payments, student loans, and credit card debt.

  • New Parents

Taking on the new role of parenting, or adding an extra bundle of joy in your life can be both challenging and rewarding. Having a child can also be quite expensive with the typical American family spending $233,000+ raising a child from birth to age 18. For a middle-income family, housing accounts for 29% of costs, 18% for food, 16% for child care/education, according to the USDA. 

Life insurance provides an income should one, or both parents pass away. The life insurance benefit can be used for costs of living including food, housing, child care, and education. If you are a single parent, the life insurance benefit is a financial lifeline for your child should you pass away. 

See this Bankrate guide that covers which financial expenses soon-to-be parents can expect. It includes a breakdown of the different costs to consider when raising a child.

  • Highly-paid employees

Many employers now offer group life insurance with a few thousand dollars of benefit to cover a small funeral cost, sometimes more. However, this is often not enough coverage especially if you have a family. If you are looking to move jobs, your group life insurance coverage will likely end creating a gap in coverage for you and your loved ones. Having your own individual life insurance policy means you won’t have a gap in coverage when you switch jobs.

If you’re starting your own business, a “key person” insurance coverage will help to protect your business by providing a benefit to replace the lost income and pay for business expenses in case of death or disability. Valued partners and employees have an enormous impact on your business both positively, but also negatively if they cannot perform their job. With a “key person” coverage you can use the benefit to buy out a partner without depleting company cash reserves, or use the cash to pay for expenses and buy time to fill in the gap.

  • Individuals Looking Towards Retirement

Life insurance is important in creating a well-structured and well-rounded retirement plan. Permanent life insurance policies provide a reservoir of cash that you can use during retirement through the cash value component. Life insurance is also used for estate planning and may help your beneficiaries pay taxes and legal fees. Consult with your financial advisor on the best plan for your retirement needs.

  • Caregivers

The aging population is living longer, and many people in the United States rely on family members to care for them. This puts an enormous financial and emotional burden on loved ones as they try to cope with their ailing relatives. If you’re providing care for an aging relative, a life insurance policy is essential in making sure you have a backup plan to protect their continuity of care if you pass away.

  • Divorcees

Ending a relationship is a good time to reevaluate your existing life insurance before a divorce is finalized. If your current life insurance coverage lists an ex as a beneficiary, consider excluding them from your list. Don’t forget to review your beneficiaries after splitting up.  In addition, consider purchasing your own life insurance policy, or adding a new one.

LIAM 2022 banner (1200 × 300 px)

Life Insurance Awareness Month 2022: Why Participate in LIAM?

 

As an insurance agent, we know how important it is to stay informed about the latest trends in the insurance industry. And since we’re committed to providing you with all the information you need to be an informed and savvy agent, we wanted to share some of the facts and figures from Life Insurance Awareness Month.

Table of Contents

What is Life Insurance Awareness Month?

Life Insurance Awareness Month (LIAM) is a campaign that occurs every year during the month of September. The nonprofit organization, Life Happens, sponsors LIAM—a month-long campaign dedicated to helping consumers take personal financial responsibility through the ownership of life insurance and related products. As a life insurance agent, this is the perfect time to take full advantage of LIAM resources to spread the important message about life insurance to your existing clients and launch marketing campaigns aimed at new prospects.

As a life insurance agent, you’re a key player in spreading the word about the importance of life insurance to your clients and prospects.

Your LIAM Tool Kit

What are the LIMRA Insurance Barometer Study results?

The study found that half of Americans don’t have life insurance and that COVID has made it more likely that they will purchase life insurance within the next year.1 When looking at key groups, interest is highest among Millennials (44%), Black Americans (38%) and Hispanics (37%). The purchase intent for life insurance also reached a record high this year, signaling more people are aware of the product and need.

The purpose of LIMRA’s Insurance Barometer Study is to provide a snapshot of how Americans think about life insurance and how they feel about their own coverage. For each survey, LIMRA interviews roughly 1,200 consumers who have either purchased life insurance or are considering purchasing it. They ask questions about what kinds of coverage people currently have (or don’t have), why they bought it (or didn’t buy it), and where they learned about the product.

graphic_Barometer_consumer_financial_impact_2022_1200x675_branded

KEY MARKET: MILLENNIALS

Millennials, ages 24 to 40, are at a time in their life when they need to be thinking about life insurance. They are typically married, have children and enjoy a sufficient salary with majority having more than $100,000 in household income.2 Yet more than half of millennials have no life insurance coverage at all, putting their loved ones at risk of financial hardship should they die unexpectedly. Misconceptions about insurance often deter them from purchasing the coverage they say they need.

The 2022 Insurance Barometer Study finds that more than one third of millennials say they don’t own life insurance because it is too expensive.3 But in general young, healthy adults are most likely to not only qualify for coverage but also be able to secure the most affordable rates.

Millennials represent the largest market opportunity for our industry with half saying they need life insurance. This is where insurance agents come in and explain how to select the right type of coverage for their circumstances and discussing options can provide additional protection for their loved ones.

 

Making the Most of Life Insurance Awareness Month

Every year, we’ll gather marketing resources and materials from industry leaders to help you make the most of Life Insurance Awareness Month. Use the tools and resources on this page to access hundreds of email templates, social media posts, videos, websites, and more!

 

 

Marketing Tools and Carrier Resources

Last updated: 9/19/2022 at 1:40 pm

 
couple thinking finances

Insurance Brokerage: What It Is and Why You May Need One

Insurance brokerages are often thought of as the middlemen between insurance companies and their clients. But in reality, they perform a much broader range of services for their customers and can help you with everything from finding the right coverage for your needs, to helping you find a company willing to work with your unique situation.

What is an Insurance Brokerage?

Insurance brokerages help you navigate the confusing world of insurance. You might have questions about what kinds of insurance you need, or how much coverage you should get. An insurance broker will take the time to sit down with you and discuss your needs and goals in order to figure out what type of policy would be best for you. They’ll help you understand the basics of insurance so that you can make smart choices when it’s time to buy.

If you’ve ever felt confused about how insurance works or why it’s important to have coverage at all, an insurance broker can help clear up those questions. They can advise you on how much coverage is enough and how much should be avoided altogether. They can also help you navigate tricky situations like filing a claim, switching carriers, or buying life insurance on someone else’s behalf.

Overall, Occidental Underwriters of Hawaii can help clients find the insurance solutions they need to protect their assets, mitigate risk, and ensure peace of mind. Our experienced team can guide clients through the insurance process, from initial assessment to ongoing support and policy management.

Why do I need an Insurance Brokerage?

Insurance brokers are experts in their field—they know how to find the right policy at the right price. They can help make sure that what’s being offered is actually useful to you and meets your needs. They also have access to a wide variety of options so they can find something that works well even if it’s not available directly from an insurer. Finally, they’ll be able to answer any questions that come up during the buying process because they’ve done this many times before!

An insurance brokerage is a company that helps people find and purchase insurance.

Insurance companies are huge, and they don’t always have the time to listen to your needs or answer all of your questions. That’s where an insurance brokerage comes in. An insurance brokerage’s agent can sit down with you, take the time to understand what you want out of your insurance plan, and recommend some options that best suit your needs. They’ll also help you navigate through the process of buying a policy so that it’s as easy as possible for you.

Insurance brokerages and agents are there to help you find exactly what you’re looking for—whether it’s a simple term policy or a multi-year whole life plan—and they’ll make sure that everything goes smoothly once that policy is in place.

Occidental Underwriters of Hawaii’s Brokerage Offerings

Our company offers a variety of insurance products to protect your family and loved ones. Choose from life, long term care and critical illness insurance, disability insurance, annuities, and retirement planning solutions to help your future be secure.

Occidental Underwriters of Hawaii’s Partnered Insurance Carriers

At Occidental Underwriters of Hawaii, Ltd., we understand that the best way to provide peace of mind for our clients is to offer them a diverse selection of insurance products. That’s why we work with several different insurance carriers, each of which offers a diverse selection of insurance products.

We know how important it is to have the right coverage, and we want you to rest easy knowing that your insurance needs will be met. View our list of insurance products, carriers we work with, and services we provide!

Products and Services We Offer

Life Insurance
Long-Term Care Insurance
Critical Illness Insurance
Disability Insurance
Annuities & Retirement Income
Personalized Consultations

Our Carrier Partners

We’re partnered with 20+ A rated carriers to provide the best options.

    • AIG
    • Allianz
    • Athene
    • American National
    • Assurity
    • The Cincinnati Life Insurance Company
    • Equitable
    • Great American Insurance Group
    • Jackson
    • John Hancock
    • Legal & General
    • Lincoln Financial Group
    • MassMutual
    • Mutual of Omaha
    • Nationwide
    • OneAmerica
    • Pacific Guardian Life
    • Pacific Life
    • Principal
    • Protective Life Insurance Company
    • Prudential
    • SBLI
    • Securian Financial
    • Security Mutual Life
    • Symetra
    • Transmerica

We Are Your Back Office Support

Underwriting Expertise

We can help you get your insurance coverage faster, with less hassle.

Acceleration Underwriting

If you’re in a hurry, we can help you find quicker options should you qualify!

Case Management

We are real people who care about your situation and will walk you through every step of the process.

Get Started

Our team is always here to help you get your insurance started. We believe that the best way to protect you is to know you. That’s why we take the time to get to know you, your family, and your life—all while making sure that our underwriting process is as quick and easy as possible.

Our agents are trained to understand how your insurance needs are unique, and can help you with any questions or concerns you have about your coverage options. We also have accelerated underwriting options for those who need them, and case management services for those who want them.

And because we believe in real people helping real people, our team members are all licensed agents who will take the time to explain all of our coverage options in detail, so there’s never any guesswork on your part.

Contact us
DI Blog

Disability Insurance Awareness Month

May is Disability Insurance Awareness Month! Disability insurance is arguably the most misunderstood of major insurances as 50% of Americans said that they would rely on savings to cover their needs if they became disabled. 

If 60% of US Households have less than $6,275 in liquid savings; an amount equal to three months of income at the poverty level, how will a family or business avoid bankruptcy should he/she become disabled? 

Let us help you educate your clients so they can protect their family or business should they become disabled. Here, you’ll find carrier-specific Disability Insurance resources including infographics, and social media content.

DISABILITY AWARENESS MONTH RESOURCES:

A DISABILITY INSURANCE PRODUCT FOR YOUNG ADULTS

For all your life insurance declines, why not look at Assurity Life’s Accidental Death Insurance Plus? The difference is the Plus in Assurity’s product. This policy will provide a death benefit from the accident AND allows you to add an Accident Only Disability Insurance rider. Because the policy is non-medical, most policies will be underwritten and issued within a week. 

“I applied for $150,000 of coverage and $1,500/month in disability benefits for two years and was able to do a quote and application from the Assurity producer website in 10 MINUTES.  Best of all, the premium was very affordable at $37.66/month.” – Michael Sato

Be the hero to your declined clients or use the product as an affordable door-opener for life coverage with your young adult clients. Call Occidental Underwriters for more information at (808) 536-1933.
Assurity Acci-Death-Plus-Highlights_15-991
Download Product Highlights for Accidental Death Insurance Plus
woman in wheelchair in hallway office looking out towards the window

Disability Insurance

This is your guide to disability insurance also called disability income (DI) insurance and understanding how the product works. Hard work doesn’t come easy, and neither does money. That’s why there’s insurance to protect the money you make. Disability insurance is one way to make sure you stay afloat financially when an unforeseen event happens.

 

Why do I need disability insurance?

Most people have enough savings to cover their lost income for about three to six months. However, if you become injured or too sick to work for an extended period of time, DI could help cover a portion of your income including bonuses and commissions. It’s important to know that even if you have group long-term disability insurance through your employer, it may not be enough.

The most important asset you have is your ability to earn a living. It’s a scary thought but if you weren’t able to work, how would you live? Where would the money come from? How would you pay for your expenses? Your earning power – your ability to earn an income – is a valuable asset. Imagine that today your income is covering your expenses, but tomorrow you experience an event that leads you to become disabled. You want to get disability insurance because in the off chance that you become severely disabled, your family won’t suffer the financial consequences.

Younger people aren’t immune to a disability. In fact, one in four 20-year-olds will experience a disability for 90 days or more before they reach age 67, according to the Social Security Administration.

How disability insurance works

Disability insurance is an agreement made between an insurance company and the policyholder. In exchange for monthly payments you make (premiums), the insurance company agrees to pay you a monthly benefit amount if you suffer a disability that affects your ability to work. This is designed to replace around 70% of the income you would lose, but not 100% of the income.

An individual will pay non-deductible disability income insurance premiums to the insurance company, and in exchange if the individual becomes disabled, the individual will receive tax-free disability income benefits.

The disability income benefits are subject to a waiting period – the time you are considered disabled before the benefits begin – typically 60, 90, 180, 365, or 730 consecutive days of disability. Disability income benefits are often in periods of one year, two years, five years and to age 65.

An adequate amount of personally-owned DI, coordinated with other sources of income, can guarantee a source of income in the event of serious illness or injury.

Disability Insurance Diagram How it Works

Alternatives to Disability Insurance

  • Critical Illness Insurance

    Critical Illness Insurance (CII) is paid as a lump sum and is yours to use for any purpose without restrictions.

    Some benefits of acquiring CII when younger is that the coverage is typically cheaper. For individuals in their 20’s, it is a good idea to look to CII as they are more likely to be unable to work due to an illness than a pre-mature death.

    Learn more

  • Temporary Disability Insurance (TDI)

    Temporary disability insurance is not the same as workers’ compensation, which covers you from illness or injury sustained at work, but not off-the-job.

    TDI pays you a monetary benefit of a few hundred dollars over a period of weeks if you can’t work due to an illness or injury you experienced outside of work. It can pay you while you recover from heart surgery, convalesce from a broken back suffered from a fall at home, or mend from one of many other illnesses and injuries millions of people experience every year.

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Occidental Underwriters of Hawaii, Ltd.
1163 South Beretania Street
Honolulu, Hawaii 96814
Phone: (808) 536-1933
Fax: (808) 527-8810