News Room
Mutual of Omaha’s New Disability Plans Allow Add-on Critical Illness and Hospital Coverages
OMAHA, Neb. — (June 27, 2007) Mutual of Omaha’s new Disability Income Choice Portfolio offers four disability insurance plans that are designed to meet the needs of a wide variety of consumers. And by allowing the option of adding critical illness and hospital confinement coverages to their disability plans, consumers can purchase several types of coverage with a single application.
The four disability plans included in Mutual of Omaha’s Disability Income Choice Portfolio include a combination of short-term and long-term coverages, along with a business overhead expense plan designed for small-business owners.
The optional critical illness coverage provides a lump-sum benefit upon diagnosis of certain illnesses, such as cancer, heart attack, stroke, etc. The hospital confinement coverage pays a daily benefit to help cover the cost of hospital room and board. Both coverages are valuable options and do not require separate applications or underwriting.
The Risk of Disability is Real
While most people don’t think twice about purchasing life, auto and homeowners’ insurance, they often fail to realize that their most valuable asset is their ability to earn a living. Suffering a disability for any length of time because of an illness or injury could have devastating financial consequences.
“Many workers mistakenly believe that government- or employer-based coverage will take care of them if they’re disabled,” said Mutual of Omaha’s Brad Buechler, Product Performance Director.
But only 39 percent of the 2.1 million people who applied for Social Security disability benefits were approved in 2005, according to the Social Security Administration. And when you consider that 90 percent of disabling accidents and illnesses are not work-related, reliance on Workers Compensation is misplaced. In addition, fewer than three in 10 U.S. workers participate in private long-term disability plans, according to the U.S. Department of Labor. Even those lucky enough to have employer-based group coverage typically will be able to replace only 50 to 60 percent of their income – usually not enough to pay 100 percent of their bills.
The risk of disability is real. The American Council of Life Insurers reported that a 35-year-old worker is six times more likely to become disabled than die before he or she reaches age 65. And nearly 50 percent of mortgage foreclosures are caused by disability (only 2 percent are caused by death).
Disability insurance should be considered a primary coverage, said Mutual of Omaha’s Buechler. “It should always be included in any sound financial plan.” And the new disability plans from Mutual of Omaha, with the options of adding critical illness and hospital confinement coverages, are definitely worth a look.
For more information on Mutual of Omaha’s new Disability Income Choice portfolio and how it can provide consumers with affordable financial protection plans, visit http://www.mutualofomaha.com/disabilityinsurance/.
Mutual of Omaha is a full-service, multi-line provider of insurance and financial products for individuals, businesses and groups throughout the United States. Founded in 1909, Mutual of Omaha and its affiliate companies manage assets in excess of $19 billion and are ranked among the Fortune 500.