You need
enough disability insurance coverage to provide you with sufficient income to live on
until you are able to return to work or receive other financial
resources retirement, social security, and so on.
Ask Yourself ... Could I still pay my bills
without
my income?
The problem is managing the cost of disability without turning your
savings into debt
when disability strikes. Uncovered
medical expenses and monthly household bills would still have to be
paid or your family's lifestyle may have to change dramatically.
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When healthy and working
we earn normal income, we save,
and have normal
expenses!
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When disabled and not working
we have decreased income,
increased expenses, and greater debt!
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The choices are these:
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Borrow money? |
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Borrowing money when your household income has dropped
substantially may be very difficult. or not a choice at all.
|
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|
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Use of your savings? |
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Raiding your savings can have
disastrous
long-term consequences.
|
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|
|
|
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Sell property or assets? |
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You've worked hard to establish your lifestyle. Loss of
income could force you to
sacrifice your home or other assets at
fire-sale prices
|
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|
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Live on spouse's income? |
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Will your spouse's income be adequate for your family to
maintain their lifestyle?
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|
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Purchase Disability Income Insurance? |
|
Disability Income Insurance will provide
extra income so you don't have to worry about losing what
you've worked long and hard to achieve.
|
Why Disability Income Insurance?
Chances of being disabled for three months or longer
before age 65
25
30
35
40
45
50
55 |
58%
54%
50%
45%
40%
33%
23% |
Source: 1985 Commissioners Individual Disability
A Table
How much disability insurance do I need?
The benefits purchased through a disability policy are quoted as
monthly income that you receive if disabled. Consider your monthly
income after taxes as the base amount you would need. If you have
other sources of income, that should be considered in the amount you
apply for. In addition to the monthly amount, an individual needs to
consider the length of time you want to collect benefits, and when
you would need them to begin. Pay attention to the premium amount
also. Don't buy more coverage than you can reasonably afford.
Related Topics
About Disability Insurance Needs
●
Needs
●
Disability Needs Calculator
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View Types Of Benefits
●
Types of Disability Insurance
Coverage
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Benefits
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FAQ's
●
Illustrations Examples
Not all insurance products from all insurance companies
are available in all states.
Note:
We do not provide legal or tax advice. The general
information presented on various tax aspects contained in
this site are not intended to be relied upon as tax advice.
Individuals should seek the advice of a qualified tax
professional regarding the taxation of these benefits as
they apply to your particular situation.
These
benefits are offered in all states except: AK, HI, & WY.
License #'s: CA: OC38446 MT: 29724 F00-0283-LC
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