Who needs disability Insurance?
Listed below are a few reasons you might consider purchasing Disability Insurance:
If you financially support your family, purchasing this type of Insurance will give you a peace of mind that if you become disabled, you will have a stream of income coming in every month.
If you are paying off debt, losing income can be a devastating blow. Including your debt into a disability policy will help you if you become disabled and cannot pay off any of your bills.
If you are self-employed and rely on your income alone, it might be time to think about a Disability Policy.
If your employer does not offer short-term disability insurance and you work at a higher risk occupation, purchasing this policy should be considered.
Why is Disability Insurance a good idea?
Just think about how devastating your loss of income would be for you and for your dependents if you have them. Then, think about not being able to work to earn any income for the future. This is a possible circumstance you could avoid with planning. The only person who can take care of you being in a financial crisis is the healthy person you currently are. Only you can make the right decision.
Does Disability Insurance cover all disabilities?
This really depends on your plan. Each plan has its own definition of a disability, so make sure to have your agent review the plan carefully.
How much Disability Insurance should I get?
Insurance companies typically sell policies which can replace up to 70% of your current income. If your employer offers supplemental insurance, you may want to purchase extra coverage to offset the difference.
Will by benefits be taxable?
When you receive your benefits, they will not be taxable.
In Disability Insurance Terms, what does Own Occupation and Any Occupation stand for?
Own Occupation means that if an individual becomes disabled and is not able to perform their job duties in their own occupation, they will be eligible to receive disability benefits.
Any Occupation means that if an individual becomes disabled and is not able to perform any job duties in or outside of their occupation, they will be eligible to receive dull disability benefits.
What are the features of a Short-Term Disability Policy?
Listed below are the features of a Short-Term Disability Policy:
What are the features of a Long-Term Disability Policy?
Listed below are the features of a Long-Term Disability Policy:
Your benefit period can range from two years to the age to retirement.
Your elimination period will usually range from, 30, 90, or 720 days.
Your benefit amount can be up to 60% of your gross monthly income.