“But the chances of me needing disability insurance are low…”

Have you ever thought or said to yourself that you don’t NEED disability insurance? Think your job is low key enough that injury or illness couldn’t ever limit you from working? Do you feel like you’d be able to manage paying for your lifestyle and bills with no income, even just temporarily?

These are all valid questions and pretty important ones to spend some time on. Of course like all insurance, disability (or “income replacement” as some may refer to it as) is protection against the unknown and a bit of a gamble. But similar to life insurance, it’s peace of mind for your spouse or family – or even just yourself – that in the event you are sick or hurt in a way that you’re unable to work, you can still have some financial means to cover your obligations.

Before you can decide if you need this protection, you need to understand what your options are. There are two main types of disability insurance:

  • SHORT TERM
    • Covers 40-60% of your base salary
    • Can last from a few weeks to a year
    • Short waiting period for coverage to kick in
  • LONG TERM
    • Covers 50-70% of your base salary
    • Benefits are much longer, typically to age 65-70
    • 90 day waiting period after onset of disability

We challenge you to check out these interesting stats on disability insurance and ask yourself honestly if you still believe you don’t need it:

  • 1 in 4 people will become disabled during their working career… 1 in 4!
  • Only 48% of Americans have enough saved to cover 3 months of living expenses with no income
  • 90% of disabilities come from unpredictable health conditions such as cancer, heart disease, arthritis, lupus and MS
  • 52% of disabled individuals without coverage took more than 2 years to recover financially

If insurance can be required to cover material things such as your home and car, you really should consider your paycheck something worth protecting too.

How much does Medicare cost?

The cost of Medicare can seem confusing but it’s really quite simple. Because it is very case-by-case for each individual’s situation, this is a very brief guide to reference Medicare premiums in 2021. Part A, which is for hospital coverage, has $0 premium regardless of who is qualifying or what their income and employment status is. Part B, however, is determined by income level and how taxes are filed. This chart shows the different brackets for each and the current premiums for 2021.

File Individual Tax ReturnFile Joint Tax ReturnFile Married & Separate Returns2021 Monthly Premium
$88k or less$176k or less$88k or less$148.50
$88k – $111k$176k – $222kN/A$207.90
$111k – $138k$222k – $276kN/A$297.00
$138k – $165k$276k – $330kN/A$386.10
$165k – $500k$330k – $750k$88k – $412k$475.20
$500k or above$750k or above$412k or above$504.90

 

This chart is specific to Florida Blue’s current Advantage Plan and Plan G supplement but may also be helpful to show the estimated cost of both routes you can go if purchasing additional coverage to Parts A and B.

ADVANTAGE PLANSUPPLEMENT
Medical CoverageMedical Coverage
Monthly Premium: $47.90Monthly Premium: $180.60 (Plan G at age 65)
Part A: $0Part A: $0
Part B: contingent on income (see above)Part B: contingent on income (see above)
Prescription Drug CoverageStandalone Part D
Monthly Premium: included in planMonthly Premium: $73.70
Deductible: $250Deductible: $405

 

MONTHLY TOTAL

ADVANTAGE PLAN

$47.90 (+ Part B)

SUPPLEMENT

$254.30 (+ Part B)

Includes copays & coinsurance.

Out of pocket max: $6,500 in network/$10,000 out of network

Part B deductible ($203) must be met.

No copays or coinsurance.