The Purpose of Disability Insurance
Disability insurance was created to insure you for a disabling sickness or injury, these plans will provide an individual the ability to continue their standard of living. They are designed to replace up to 60% of taxable income. As you can observe above, there are a significant number of carriers available to search out the best occupational definitions, and occupational rating classes for your particular profession.

Q. If you are permanently disabled and cannot work, what will Social Security cover?

A. Social Security has a cap on the amount of benefits you'll receive. In most cases, there will be a 5-month waiting period before eligibility, plus another 7 months before you even receive a benefit check. In addition, 56% of all disability claims are rejected by Social Security. More>

Q. If you collect disability income benefits, do you have to pay Income Tax on them?

A. Provided you pay the premiums out of your own pocket on an after-tax basis, the benefits are not taxable. However, if premiums are deducted from your paycheck on a pre-tax basis such as in a Section 125 cafeteria plan, benefits will be taxable. If your employer pays part of the premiums, only the portion of the benefit that is attributable to your own contributions will be tax-free. More>