Nothing is more dangerous than a false sense of security .Many individuals have just that, when they are healthy, active, and succeeding in their career. We tend to operate with a sense that we are infallible and that nothing will harm us or knock us off our path. However, that is far from true. When it comes to financial risks, one of the greatest risks that we all face is the inability to get up every day and go to work.

The fact is your greatest asset is actually your ability to go to work and earn an income. Think about this: most people will tell you that their single greatest asset is their home, automobile, or their sizeable tax sheltered annuity. However, without your ability to earn an income you stand to lose all that you work so hard to accumulate. Statistically there is a far greater chance of a prolonged illness or injury before age 65 than there is a premature death. yet most people will protect themselves from an untimely death by acquiring significant amounts of life insurance to protect their assets and their family. Many of these same individuals have inadequate disability income protection, or have no protection at all.

Exactly what are the options available to protect your income. The fIrst is savings. However, if you saved 10% of your income every year, one year of disability would eliminate 10 years of savings. Second is the income of a spouse. Though this is a viable option for some, many times the spouse may need to stop working to become a caretaker for a disabled partner. Furthermore, unless you are able to save 100% of the second income while both are working, the loss of one income will create a financial strain. The third option would be to borrow funds.

This is not a practical option because without an income and the ability to repay, banks are not likely to approve your request. The fourth and most logical option is to acquire Short and Long Term Disability Insurance coverage.

The insurance guarantees that when you need it most and qualify for benefits, an income stream will continue. When tragedy strikes the disability coverage is the safety net to prevent your world, both personal and financial, form crashing down.

This is why the Massachusetts Teachers Association is excited to announce that effective January 1,2001 we will begin to offer a new plan to members to protect your income in the event of a prolonged illness or injury. This plan is being underwritten by the Unum Life Insurance Company of America. Unum is the global leader in income and lifestyle protection programs. As the leading provider of Short and Long Tern Disability plans in the United States they have an extensive customer care department in Portland, Maine, which prides itself in paying claims on a timely and professional basis.

The new plan will give members the option to enroll in either a Short Term and/or Long Term Disability plan without a medical exam or questionnaire. It will also allow you to choose the level of coverage that is appropriate for your own needs, is priced very competitively, and provides a much broader depth of coverage than what is offered under the present plan.

If you are presently enrolled in the existing Washington National policy your coverage will continue in the new plan. In fact many member will be eligible for an increase in coverage on a guaranteed issue basis. Also this plan will allow for an increase in coverage as your income increases. It will also provide residual (sometimes referred to as partial) disability benefits all the way to age 65, rather than simply for the first 24 months. . Residual coverage is very important because it allows you to return to work and continue to be eligible for a benefit, as long as you earn less than 80% of your prior income as a result of a continuous disability. In fact, you will be eligible for residual benefits without needing to first satisfy a period of total disability. The bottom line is that the new Unum plan will provide coverage on a much broader basis and pay benefits to an insured in more claims scenarios.

You can expect to be hearing more from us over the next several weeks on how you can learn more about your plan options and how to enroll. You will also have the opportunity to meet face to face with a representative to answer any questions you may have.

At the MTA we are very excited to be able to offer our membership such a quality and important benefit that will provide added financial security for yourself and your family. We look forward to working diligently for all our members to deliver the value and quality you all expect.

Both Thomas Colbert and Daniel Bradley are disability income specialists with the Vista Financial Group in Westboro, MA. Vista has been working with MTAB to design the new disability plan for the Massachusetts Teachers Association.