Alexandra Ginieres

Head of Disability Marketing, Individual Markets

Guardian Life Insurance Company of America^®

 

Editor’s Note: Experiencing a disability doesn’t have to be career ending. Being prepared for those “what if” moments is important. If you have the right coverage in place when an injury or illness strikes, you can ensure your income is protected. A partial disability option allows you to return to the workplace part-time and receive a partial (or residual) disability insurance benefit even while you are recovering.

Know the facts

Protecting your income with disability insurance (DI) is a critical part of ensuring financial well-being for you and your family. It’s true that one in four of today’s 20-year-olds will experience a disability before they reach retirement.¹ But not all disabilities are alike. Many people assume that the most common cause of a disability is an accident, but in fact, most disabilities are caused by illnesses such as cancer, heart attack and diabetes.²

While a disability could leave you unable to work for a period of time, it may not prevent you from working entirely. Sometimes a disability can hinder your ability to perform the duties of your job, but you may still be able to work at some capacity. Whether you’re unable to perform all your duties or you can’t perform those duties for the same length of time, many injuries and illnesses can impact your income despite still working. This is known as partial disability.

Why do you need partial disability insurance?

Experiencing a disability doesn’t have to be career ending and being prepared for those “what if” moments is important. By having the right coverage in place when an injury or illness strikes, you can ensure that your livelihood is protected. With the right policy that supports options for partial disability, you can return to the workplace even while you are recovering.

When deciding on a partial disability benefit rider, it’s important that you choose one that not only fits your needs, but one that can also provide the best protection during all phases of a disability. Finding a robust DI policy with a strong partial disability rider can provide you with more benefits sooner, longer, and can help eliminate the risk of lost income.

Partial disability benefits to look for

Whether you are a professional or business owner who has a fee-for-service income or a salaried employee, finding a policy with strong partial benefits could mean the difference between focusing on your physical recovery or dealing with the burden of lost income. You want to look for a carrier who understands how important it is to get “back on your feet” after a disability. Consider a policy that includes strong partial features that will enhance your protection.

The definition of “partial disability” is different in each policy. When a disability income policy covers partial disability, the benefit is usually equal to a specified percentage of the total disability benefit for a limited time period. For example, 100% for 12 months.

• • • • • • One feature to look for when considering a partial disability rider is a lower loss of income trigger. A lower loss of income trigger could qualify you for benefits sooner if you’re unable to work as many hours or unable to perform all the same duties you did prior to your disability.
          • Another important component to look for is that the benefits received are based on your loss of income due to the disabling condition with no requirement for reduced time or duties. This means that you may be eligible for benefits even if you never miss a day of work.
          • Additionally, a rider that treats recovery time as a partial disability can also be helpful, as you can use that time to satisfy the benefit elimination period, which in turn will allow you to access your benefits sooner. That means your carrier will waive monthly policy payments while you’re disabled and receiving benefits.
          • Also look for a carrier who may offer a Waiver of Premium Benefit, which means the company will waive premium for a period of time after recovery and benefits end.

Remember that the goal is to retain as much of your income as possible, and the right policy can help you do just that.

For Employers

When deciding which benefits to offer your employees, consider a DI policy that includes partial disability benefits. By offering this type of coverage you are encouraging your employees to be productive and return to work after experiencing a disability. Whether you offer a group policy or an individual policy, the partial disability rider features can support your employee and ensure their income is protected through all stages of their recovery.

Explore your options

When considering which policy may best suit your needs, find an experienced provider to help you choose the partial benefits will work best for you. Finding a provider that understands the need for income protection at every phase of a disability is key. Speak with a financial professional about your needs and find the protection that makes the most sense for you.

_{¹ U.S. Social Security Administration Fact Sheet, January 2022.}

_{² https://disabilitycanhappen.org/disability-statistic/}

Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice. This material contains the opinions of the author but not necessarily those of PAS or Guardian. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.

Individual disability income products underwritten and issued by Berkshire Life Insurance Company of America (BLICOA), Pittsfield, MA or provided by Guardian.  BLICOA is a wholly owned stock subsidiary of and administrator for the Guardian Life Insurance Company of America (Guardian), New York, NY.  Product provisions and availability may vary by state. Optional riders are available for an additional premium.

GUARDIAN® and the Guardian Logo® are registered trademarks of The Guardian Life Insurance Company of America.

©Copyright 2022 The Guardian Life Insurance Company of America, New York, N.Y. Full permission given to The Council for Disability Awareness to reproduce this material.

2022-144003 (Exp. 09/24)