Why you need Disability Insurance
What is your most valuable asset? Your home? Your Car? Your Health? None of these are… it’s your ability to earn and income! Your income is what pays for both the big things in life – the mortgage, car, food, utilities, vacations – and life’s little things – children’s activities, movie tickets and cell phones. Most of us buy insurance to protect our home, automobile, health, life etc. but, choose to ignore the most important asset which needs to be protected– OUR INCOME. Without your income, you cannot afford any of your basic needs.
If you were to become sick or hurt and unable to work, how would you continue paying for the place you call home? Or for the car your drive? Disability Insurance can protect your mortgage and car payments by providing you an income if you are sick or hurt and unable to work. The average cost of an individual disability policy is 1.5% to 3% of your income to protect about 55-65% of your income on a TAX-FREE basis.
What are your options?
Group Disability Coverage
If you have Group Disability coverage at work then you don’t own this policy. You may have group LTD (Long Term Disability) or STD (Short Term Disability) coverage at work paid for by your employer, but most employees are not aware of the limitations of the group coverage or the amount of coverage they have. Your group LTD coverage is not portable (meaning you can’t take it with you if you leave your job) and if your employer pays the premiums, your benefit becomes taxable.
Individual Disability Coverage
If you have Individual Disability coverage, you own this policy not your employer meaning this coverage goes with you after you leave your job. Benefits are not taxable (when premiums are paid with after-tax dollars) and can be purchased in addition to any group disability coverage you have. Disability policies provide a benefit if you are “unable to perform the duties of your occupation due to sickness or injury”.
Policy definitions are different for each insurance company, so shop wisely or use an independent broker who can provide you quotes to compare from several different companies. Each insurance company offers different features/riders which can be added to a policy. Some of the important riders to consider are “Own Occupation”, “Residual Disability”, “Inflation (Cost of living)” “Return of Premium if benefits are not used”. We can provide detailed information on how these riders work.
How much do you spend on technology and dining out each month? Most Americans spend over $250 per month but, those same individuals haven’t taken the important step of buying disability insurance because they perceive it to be “too expensive.” How long could you make ends meet if you no longer could afford your lifestyle because an unexpected illness or injury made it impossible to work? Spending around 2.5% of your income to protect about 55% of your income is a small price to pay.
Contact us for more information on what disability plan is right for you.
Six Mile, SC 29682
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