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Winter 2019  Volume 12, Number 4        

The Benefits of Purchasing Life and Disability Insurance Together

Most people easily grasp the importance of having a life insurance plan.

Death is inevitable and life insurance can provide a surviving spouse, children and other dependents with the funds to maintain their standard of living.

Though the need for disability insurance, which is also designed to help a family pay the bills if something happens to the breadwinner, is not as inevitable as life insurance, it could be just as important. According to the Social Security Administration approximately one in four 20-year-olds will experience a disability before they retire. Most disabilities are not because of accidents, but are the result of diseases like cancer, or chronic conditions, such as back or muscle pain.

The process for applying for both types of insurance are very similar, and since the process can be rather long and involved, many people find it just makes sense to apply for both at the same time.

  • If you have a complicated medical history, underwriters probably will request your medical records. Applying for both at the same time means one exam for two applications.
  • If you are denied disability insurance or your rates are higher than you can afford, talk to your agent about applying for a disability insurance rider or endorsement on your life insurance policy. Long-term disability insurance provides better protection, but a disability income rider at least will provide you with a monthly stipend. This kind of rider requires additional underwriting and will increase your life insurance premiums.

Underwriting rules for disability and life insurance vary greatly by company. For instance, if you have high blood pressure, you might find that some companies look less favorably on the condition and may charge more than another company. When working with a financial planner or insurance broker, make sure they understand your needs and health.


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In this issue:

This Just In...

A Beneficiary's Guide to Filing a Life Insurance Claim

Two Medicare Enrollment Periods for 2020 Benefits

The Case for and Against Universal Health Care

The Benefits of Purchasing Life and Disability Insurance Together


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