EXECUTIVE DISABILITY INSURANCE: Women Need Paycheck Protection, Too
By: Nancy Damato, Partner, RDA Benefit Services As successful owners of companies and high-level executives, women contribute a significant amount of income to the family budget—and may even be the sole breadwinner. Did you know that according to Pew Research, women are the main or only breadwinner in 40 percent of households with children under age 18? With their day to day focus on growing their businesses, women tend to overlook the most important concern of all— protecting their paycheck. Benefits from employer-provided policies only cover a portion of income and can leave quite a large income gap. These benefits are generally taxable and are typically far from adequate to meet anyone’s needs. And if earnings include commissions or bonuses, the gap could be even greater. Keep in mind, too, that the average monthly benefit paid by Social Security Disability Insurance is only $1,004 per month. (Source: Social Security Administration, 2008) WHAT ARE THE CHANCES THAT YOU COULD BECOME DISABLED? Statistics show that women are more likely than men to experience a disability. According to the Council of Disability Awareness (CDA), 54% of new disability claims approved during 2012 were for women. The leading causes of disability claims today are: muscle and bone disorders, followed by cancer, injuries and cardiovascular issues. (Source: 2014 LTD claims review, Council for Disability Awareness). 90% of all disabilities before retirement age are due to an illness, not an injury. And since most disabilities are not work-related, they are not covered by worker’s compensation.
INDIVIDUAL DISABILITY INSURANCE OFFERS VALUABLE INCOME PROTECTION. When asked if they had enough money set aside to pay their bills without an income, 77% of people said they could not be out of work for longer than a year. Individual Executive Disability Insurance, being offered to UTCANJ association members by Mass Mutual Life Insurance Co., offers comprehensive income protection. These policies use the “own occupation” definition of disability, which is a very important feature of a disability policy. These policies cover mental and nervous conditions, in addition to physical disabilities. These policies offer many additional benefits, including catastrophic disability insurance benefit rider, a partial disability benefit, rehabilitation benefit, survivor benefit, compassionate disability benefit, automatic benefit increase rider, group supplemental disability insurance benefit rider, future purchase option rider and indexed cost of living rider. Benefit periods can vary, but the maximum benefit period you can choose is now age 67, since people are staying in the workforce much longer now. Association members can receive up to a 25% discount off the individual rates for these plans—for both individual protection, as well as business overhead expense protection. This valuable benefit with the association discounts is available exclusively through RDA Benefit Services LLC. For additional information about these plans and a complimentary, no-obligation quote, please contact Nancy Damato at 855-6930772 or 609-693-0772.
Utility and Transportation Contractor, DECEMBER 2016
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