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Disability Insurance

Lost productivity due to employees becoming disabled is an issue of great cost for employers. Economic, demographic and societal trends have led to an increasingly mobile, diverse and older workforce. In addition, increased stress in the workplace and the home are taking a toll on overall employee health, productivity and safety. The result is higher health care and disability costs that have a measurable impact on employers and the employee benefits packages that they offer. These trends and costs are expected to continue to interact with and influence the marketplace, so making appropriate benefit choices remains important for employers.


Studies show that working-age adults are more likely to suffer from lengthy disabilities in any given year than they are to die. Unless it is offered through their employer, most adults have little, if any, disability insurance coverage.

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Click on the Pre-Screening Questionnaire today to request your individualized Disability Quote today.  Completed forms can be sent to

What is group disability insurance?

Group disability insurance provides income protection for employees as well as cost-saving management strategies for employers. For employers, lost time on the job due to a disability can significantly impact workplace productivity and profitability. However, disability insurance provides partial replacement of lost income for employees while also covering overtime and costs of hiring replacements. Most employers offer salary continuation plans. Many states also mandate temporary disability insurance that requires employers to provide benefits equivalent those working in non-statutory states.


Is group disability insurance really necessary?

Lost time and medical costs are on the rise, and the risk of disability is greater than most employers and employees realize. Consider these statistics:

  • Over 36 million Americans are classified as disabled.

  • Three in ten workers entering the workforce today will become disabled before retiring

  • An illness or accident will keep one in five workers from working for at least a year sometime during his or her career


Don't have Group Disability Insurance?

What is your most valuable asset?  Your home?  Your Car?  Your Health?  For most people, it is their income. Your income pays for both the big things in life – the mortgage, car, food, utilities, vacations – and life’s little things – children’s activities, movie tickets and cell phones.  Most of us buy insurance to protect our home, car and health, but we ignore the most important asset which needs to be protected– OUR INCOME. Without your income, you cannot afford any of your basic needs. This article discusses disability insurance and why it is important.

Benefits of Individual Disability Insurance

With an Individual Disability Insurance policy, benefits are not taxable (when premiums are paid with after-tax dollars) and can be purchased in addition to any group disability coverage you have. Disability policies provide a benefit if you are “unable to perform the duties of your occupation due to sickness or injury”. Policy definitions are different for each  insurance company, so shop wisely or use an independent broker who can provide you quotes to compare from at least 4 companies. Each insurance company offers different features/riders which can be added to a policy. These features/riders vary based on age, income, occupation, etc. Some of the important riders to consider are “Own Occupation”,  “Residual Disability”,  “Inflation (Cost of living)” and “Catastrophic”.  Your broker/agent can provide you with detailed information on the riders.

How much do you spend on technology and dining out each month? How long could you make it if you could no longer afford your lifestyle because an unexpected illness or injury made it impossible to work?  Spending around 2.5% of your income to protect about 55% of your income is a small price to pay. Contact AJM Associates, Inc. today to learn more on how Disability Insurance can benefit you.

Does your State require Statutory Disability (SDI) coverage?

In the United States, there are several states and one commonwealth that provide statutory disability programs, commonly known as "disability insurance".  They are funded by mandatory contributions of employees (optionally covered by employers).  Those States are California, Hawaii, New Jersey, New York, Rhode Island and the commonwealth of Puerto Rico.  In addition some states are implementing Paid Family and Medical Leave.  Such states are New York, starting January 1, 2018 and Washington, starting January 1, 2020.  To learn more follow our BLOG.

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