Disability insurance is a solution in the event you are disabled from bodily injury or illness, resulting in a disability that prevents the insured from working at your regular employment. Benefits are usually paid monthly so the incurred can maintain a comparable standard of living and pay recurring expenses.
- Think for a moment about what would happen to your life if you cut your paycheck in half?
- How would life be different if you were no longer physically able to earn a paycheck?
Think about the disability insurance coverage you receive through your employer and ask yourself the following questions:
- How long will I receive income from my current employer if I am disabled?
- How long is the benefit period of the group coverage I have through my employer?
- How long will my savings last?
- How long before I need to liquidate our investment/retirement accounts?
- How long before we need to sell the house due to the reduction of my income?
Although some employer-sponsored plans and Workers Compensation can provide help during a disability, the quality and scope of the coverage may leave the disabled employee short of the protection they require. Many employer-offered plans are part of a suite of coverage and may not pay to the levels an employee needs to meet their expenses. Also, Worker Compensation only covers injuries as a result of employment.
Disability insurance has a variety of factors which influece the final premium. Policy costs generally range from 1.5-3% of the gross income. Insurance underwriters also consider age. The minimum age for applicants is 18 years and maximum age is usually 60.
Being disabled for just one year could wipe out 10 years worth of savings. Your income is arguably your largest asset, is it protected? If you want to review your options and how they fit in your plan contact us today.