Serious illnesses or accidents can come out of nowhere and can happen at any age. They can interrupt your life, and your ability to work for months ─ even years. Most people rely on their emergency funds, which can run out quickly, especially if the illness or injury is long term. Which is the reason uncovered disability remains one of the leading causes of bankruptcy in the U.S. Fortunately, there’s disability insurance, which can replace your lost income, so you have financial support to manage your disability and your household.
If you were disabled and unable to work,
what would you and your family do for income?
Disability insurance, which complements health insurance, can help replace your lost income while you recover. Typically, if you become disabled for more than 90 days, the policy will begin paying out and can be structured to last until your normal Social Security retirement age.
43% of all people age 40 will have
a long-term disability event by age 65
For most workers, even those with some employer-paid coverage, an individual disability income policy is the best way to ensure adequate income in the event of disability. When you buy a private disability income policy, you can expect to replace from 50% to 70% of income. When you pay the premiums yourself, disability benefits are paid to you on a tax-free basis. Benefits paid to you from employer-paid policies are subject to income tax. However, it is easy to structure employer group disability plans to be tax-favored too. Ask us how.
How much disability insurance do you need?