After writing my article last year “Can I insure my hands?” , seems like the question I get the most lately is “So, how much is it to insure my hands?” Not an arm and a leg!
Before I answer this question in detail, I would like you to complete this poll:
Ok, so whatever answer you gave, you are right! I can see you now scratching your head. Yes, because the cost of insurance depends on so many factors like age, health status, medications you’re currently taking, gender, occupation and let’s not forget – the amount of benefit you want. Hands insurance as well as disability insurance can be complicated. But, it can be simple too.
… a healthy surgeon age 35 would pay about $230 per month for a $1,000,000 in disability insurance benefits*.
For example, a healthy surgeon age 35 would pay about $230 per month, for a $1,000,000 benefit payable in monthly installments over 10 years. An attorney however, same age, would pay $140 per month premium for the same $1Million total benefit. (and that’s just with one of the companies that offer this type of plan; different companies have different rates for the same occupations; you need to compare rates from at least three of the best companies out there).
But not everyone would want or need a million dollars in benefits. Let’s be realistic: the main concern should be to have enough money to pay for all your fixed expenses, like mortgage or rent, groceries, utilities and other personal or family expenses. Make a budget and figure how much you will need per month if tomorrow you will lose the ability to use your hands, or unable to work due to any other medical reasons.
Let’s say – for the sake of simplicity – that you need $1,000 per month minimum for expenses. Take the surgeon above, he will pay $36 per month to receive $1000 monthly, and will continue to receive this benefit until retirement. Just do the math: let’s subtract current age 35 from 65 retirement age, that’s 30 years of potential benefit period, or 360 months. That’s right, he can potentially receive $360,000 from a policy that only costs him $36 per month. And, unlike your health insurance or auto and home insurance, the premium remains stable for the rest of his life, regardless of any changes in health, age, smoking habits, etc. Of course, if the benefit amount is increased, the premium will be adjusted accordingly.
Let’s check the lawyer’s premium, same healthy male age 35: he would pay only $23 per month in premium for the same $1,000 monthly benefit (for a potential $360,000 total benefit).
How about a massage therapist? They use their hands a lot, therefore the risk of being unable to work and earn an income is pretty high. A massage therapist age 35, would pay about $46 per month for the same $360,000 total potential benefit (or $1,000 per month benefit, until age 65).
We’re not done yet. Based on statistics from the Council of Disability Awareness (CDA), a disability can last on an average between 2 to 5 years and then chances are that you will recover or find a job that matches your skills, knowledge and abilities. So, if cost is an issue and you’re looking for the minimum coverage necessary with a more realistic benefit period like 2 or 5 years, our massage therapist will only have to pay around $24 per month for the same $1,000 per month benefit. Let’s face it: you pay more than that for your internet and texting plan on your cellphone (which ironically could even give you Carpal Tunnel damage on your hands after intense use).
… hands insurance and disability insurance can be as affordable as you need it to be.
If you take only one thing from this article, it should be that hands insurance and disability insurance can be as affordable as you need it to be. Just make sure that your income and your ability to work is protected.
If you want a personalized quote based on your age, occupation and benefit needs, contact the specialists at LifeGuy by email or phone: InsureMyHands@LifeGuy.com or ProtectMyIncome@LifeGuy.com. Phone 877-LIFE-GUY. Or you can even fill out the form below.
* Rates are valid as of 2/26/2013 through Ameritas, for a male age 35 in good health.
Rates may vary based on your state, occupation, income, health, smoking. Ask for a
personalized accurate quote from few top carriers before making your decision to