Disability Insurance

The
loss
of
income
can
be
so
devastating
that
46%
of
all
home
foreclosures
are
caused
by
a
disability.*

*U.S. Department of
Housing and Urban
Development.
    Let's face it: Nobody likes to think about what life would look like should
disability strike. But the reality is one third of all Americans between the ages 35
and 65 will become disabled for more than 90 days, according to the American
Council of Life Insurers. One in seven workers will be disabled for more than five
years. And while many people think that disabilities are typically caused by freak
accidents, the majority of long-term absences are actually due to illnesses, such as
cancer and heart disease. The loss of income can be so devastating that 46% of all
home foreclosures are caused by a disability, according to the U.S. Department of
Housing and Urban Development.
    Disability insurance replaces a portion of your income if
you become disabled and are no longer able to work. There
are two types of disability insurance:  
group plans and
supplemental or "executive" plans.  A typical group plan
offered by an employer will replace up to 60% of your salary.
Supplemental plans and individual policies will often cover up
to 70% or 80%. (No plan will cover all of your salary for fear
you will have little or no incentive to get back to work.)
Benefits typically last for a set number of years (e.g., five
years) or until you reach retirement age. Benefits typically stop
around retirement age since once you retire, you would no
longer be dependent on the income you generated by working,
anyway. If you pay the premium out-of-pocket — meaning
your employer doesn't cover the tab — benefits are tax free.
Find out more about Disability Income Protection and
how it can benefit you by
contacting us.


Back to
Financial Planning
Back to
Business Planning