So, What is Paycheck Insurance?

So, What Exactly Is Paycheck Insurance?

What does 6, 12, 24 months without a paycheck look like for you if become sick or injured?

People generally begin their careers before getting married and having kids which can leave their loved ones exposed down the road if they do not take the time to properly evaluate the proper disability income protection program for their situation. It makes sense, who really wants to spend time analyzing how their income will be affected if they come down with an illness (physical or mental), or injury? It is a lot more fun to plan the next vacation, watch Netflix, or just about anything else. There is around a 25% chance during someone’s career they will incur an illness or injury that will make them unable to do their job for 90 days or more. Take a second to think about all the people you personally know who have come down with a sickness, had an accident, or something else making them unable to work. Now, take a minute and ask yourself – How would you or your family pay the bills if you were unable to work and receive a paycheck for 6 months, 12 months, 24 months, and 60 months?

It is way more common for people to make sure they have some term or permanent life insurance in force to protect their family in the event of death, but what about protecting their paycheck? How does the life insurance premium get paid if someone gets sick or injured? Why are people leaving themselves so exposed in the event of a disability? We have found the culprits are:

  • Procrastination – “I really need to look into how my group (or individual) disability policy pays out, but I have so many other things going on.” If you work for a company who generously provides short- or long-term disability benefits, please take the time to understand your benefit amount, your elimination period, length of time benefits will be paid out, and if those benefits are taxable or non-taxable.
  • Denial – “It won’t happen to me”. Take a quick look around next time you are at your office or working with fellow employees, pick out four people, statistically one of those four people will incur a qualifying disability during their career. Please be realistic and accept the risk associated with the statistics. 
  • Subliminal Bliss – “I feel wonderful! It’s a great day to be alive and well!” People are unaware of the true risk if getting disabled, even though they can probably list 5 to 10 people they personally know who have been unable to work for a period of time due to a sickness or injury. It can happen to anyone at anytime and getting an income protection plan in place while you are healthy is critical to 1 – getting a policy, 2 – paying a lot less for a policy, and 3 – getting a policy that does not have exclusions.

Most people associate disability insurance with getting injured or in an accident, but more disability insurance claims are paid out because of an illness (physical or mental), than a physical injury. The term disability insurance is pigeon holed and should be relabeled as “paycheck insurance” or “illness insurance”. Furthermore, some disability insurance companies now offer Return of Premium Disability Insurance programs where if the person does not get disabled, they are guaranteed to receive all their premiums back at age 65, which can be used to supplement retirement or for whatever they want. So, either the person will get paid out from the insurance company by filing a DI claim or they will have squirreled more money away. It is a great deal the policy of choice for the owners of Pacific Insurance Group.

Pacific Insurance Group based out of Bellevue Washington is comprised of hundreds of qualified agents who can properly evaluate people’s risk associated with getting sick or injured, we welcome the opportunity of working with anyone in the United States. Please reach out directly to us by calling our home office directly at 425-246-4222 or visiting