Help Protect Your Income with Disability Income Insurance
The possibility of sustaining a long-term disability from an accident or illness is something most of us would rather not think about. However, there is a way to help protect yourself and your family should you lose your ability to earn an income. Disability income insurance can play a key role in your overall financial plan, and provide a benefit to help replace a portion of your income in the event of a total disability.
Evaluating Your Needs
While most people understand the necessity and value of life insurance, many may overlook the valuable role disability income insurance plays in helping to create financial security. How will you support yourself and your family if you cannot work as a result of an accident or illness? For most, Social Security cannot be solely relied upon to replace lost wages.
You may be able to “get by” for a few months on your savings, but if the disability is prolonged, you may exhaust most, if not all, of it. Hardships are sure to follow. You may miss mortgage, car, and/or credit payments, causing damage to your credit rating. Utility bills, tuition, grocery bills, and business/professional expenses will also continue despite disability and loss of income.
The bottom line is that losing your ability to earn an income may make it difficult to make ends meet. Disability income insurance can be a practical solution to help protect your financial security in the event you become disabled.
Types of Coverage Available
Depending on your income, the maximum coverage will typically replace 45% to 75% of your pre-disability income. The cost of the coverage will depend on the risk level of your occupation, your age, your health history, and the scope of coverage.
When premiums are paid by the individual, and not the employer, the benefits payable under the policy are tax free.
Definition of total disability: Does the policy provide coverage in the event that you cannot perform the duties of your own occupation or the duties of any occupation?
Length of benefits payable: Depending on your choice of coverage, the policy may pay benefits until you reach age 65.
Waiting period: Waiting periods (the period prior to receiving benefits) are typically between 90 and 180 days, depending on your policy. Consider your personal financial situation.
Disability income insurance can help protect your most important asset—you and your ability
to earn an income. Reviewing your disability coverage may help you determine what type of
policy would best help protect you and your family.
At RDS Financial Services, we can:
- Help secure monthly payments to safeguard your standard of living
- Protect your financial future while providing excellent coverages
- Adjust disability coverages to meet your changing needs
Which coverages are right for you? What contingencies should you protect yourself against? How much is all this going to cost?
Disability insurance typically replaces 60-70% of your income during the time in which you are unable to work and/or perform the duties defined by your employment. Can you afford NOT to purchase this coverage?
We're committed to helping you find the solution that is right for you and your family. Give us a call today, or you may fill out the form below to request additional information.