Disability Income Protection This publication is provided as a courtesy by Berkshire Life Insurance Company of America and does not modify the provisions of any policy. It is offered for the purpose of education and information only and is not intended to constitute tax or legal advice. For information on your specific situation, please consult your personal legal or tax advisor.
DI Myths Fact & Fiction
Berkshire Life Insurance Company of America, Pittsfield, MA, is a wholly owned stock subsidiary of The Guardian Life Insurance Company of America (Guardian), New York, NY, or provided by Guardian. For more information about products and services available from Guardian and its subsidiaries, contact your financial representative or visit our website at www.GuardianLife.com. © Berkshire Life Insurance Company of America 2010 All Rights Reserved
The Guardian Life Insurance Company of America 7 Hanover Square New York, NY 10004 www.GuardianLife.com Pub3670BL-11-10 2010—04643
“Everybody knows that disability insurance claims never get paid.”
“I’ll get disability insurance in a few years. I’m in perfect health right now.”
Fact In the year 2009 alone, Berkshire Life Insurance Company of America paid more than $195 million in benefits to individual disability insurance policyholders. Some examples of typical claims are shown here.
Recently Paid Claims Claim Onset Occupation Age
Policy Issue Date
Claim Onset Date
09/19/05 11/26/08 10/25/06 10/23/08
Attorney at Law
Dentist Dentist Executive Manager
32 42 59 49
04/04/07 09/19/07 07/21/06 05/10/06
12/04/09 08/01/09 10/13/08 03/04/09
F F M F
Nurse Owner Physician Physician Real Estate Agent/ Broker/Realtor
61 54 34 44 44
04/01/07 09/15/06 09/24/08 03/05/07 05/15/08
03/07/09 12/08/07 09/11/09 07/01/08 08/31/08
F M M F M
Retinal Dystrophy Malignant Breast Neoplasm Vertabral Fracture Malignant Brain Neoplasm Pregnancy Multiple Sclerosis Multiple Myeloma Fractured Radius Bone Atrial Flutter Leukemia Brain Injury Esophagus Cancer Huntington’s Disease
Paid Benefits in 2009 over $195 million Policy terms and conditions may vary, including, but not limited to, elimination periods. A person’s eligibility for disability benefits may vary from the results stated in this table. The diagnosis of these medical conditions alone do not entitle an individual to disability benefits. A person’s eligibility for benefits is determined on a case by case basis according to the terms and conditions of this policy. Results may vary due to the degree or severity of the medical condition and occupational impairment, and according to differences in the terms and conditions of the various policies the Company offers. Please contact your agent or broker concerning any questions you may have regarding any policy you are considering purchasing.
No one can tell when a disability will occur. When you look at the preceding chart, many of those receiving benefits from us have suffered their disabilities within a year or two of purchasing their policies. If they’d waited because they were “too young” to be concerned then, they’d be without protection now.
No matter how young and healthy you are, you’re still vulnerable to disability—through an accidental injury or an unexpected illness. And once you’re unable to work, it’s too late to get the protection you need. Consider the table (to the left) to see how some young policyholders benefited from having the coverage they needed when they needed it. Another important point to consider is that many of them had not owned their policies for very long. If they had waited “a few years,” they would have found themselves with no coverage when their disabilities occurred.
Fiction “Of course I have life insurance. But I’m too young to worry about disability income (DI) *.”
Fact Most people understand the need for life insurance. Yet, the truth is, a 35-year-old has a greater chance of becoming seriously disabled than he does of dying before he reaches age 65.** And a long-term disability can be as financially devastating to you and your family as a death. After all, it’s your ability to earn an income that makes your lifestyle possible. If that income abruptly stopped, how would you maintain your household? Would you be able to cover your children’s educational expenses? Could you continue making contributions to your retirement plan? Could your savings alone sustain your family for a period of months, or even years?
* Disability income products underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America (Guardian), New York, NY or provided by Guardian. Products not available in all states. Product provisions and features may vary by state. ** 2005 Field Guide to Estate Planning, Business Planning & Employee Benefits by Donald Cady, The National Underwriter Company.
Fiction “Why should I pay all that money for something I’ll never use?”
Fact If you become disabled at a relatively early age, as some of those depicted in the table did, depending on the length of the disability, you may receive far more money in benefits than you’ve paid out in premiums. And no matter when you become disabled, your ability to support your household while you recover will be—well worth whatever you’ve paid for your protection. Now that you know the facts about what a disability could mean to you, don’t you think you owe it to yourself to get the protection you deserve?
Please call us today … and feel very good about tomorrow.