Income Protection

How much of your income would you like to keep if you were to become sick or injured and are unable to work?

Statistics show that an individual entering into the workforce has a 25% chance of becoming disabled for 6 months or more before retirement. In addition, 50% of Americans said that they would draw from investments and savings to cover their lifestyle in the event of a disability. How long would your savings and investments last in the event of a disability? How long did it take for you to accumulate your money?

The good news is that income replacement insurance is relatively inexpensive and can be designed to suit your specific needs.


Disability Insurance Considerations

Not all policies are equal. Disability policies comes in all shapes and sizes. Policies can vary depending upon benefit amount, period of coverage, elimination periods and residual benefits. Group life insurance very frequently provides inadequate income in the event of disability and any benefits from the insurance company may be taxable.

The Elimination Period

Elimination periods is the time required to pass before any benefits are paid. It’s similar to a deductible with your health insurance. Elimination periods range from 30 days to 2 years.

Coverage Period

The period of time that you receive a disability benefit will last matters. Ensuring that your benefits do not expire before your disability is an important consideration to maintaining your families standard of living.

Residual Benefits

A residual benefit allows the insured to receive a partial benefit in the event that they are cleared to return to work on a part time basis. Otherwise, the benefit will expire when you are able to return to work even if it’s only part time.

Disability insurance is relatively affordable but not having it could be an expensive mistake.