Protect Your Paycheck In 5 Easy Steps
Understanding Disability Income Insurance
Ensuring your income could be one of the most important things you ever do. You insure your home, car, and other valuables, why wouldn’t you protect the very thing that provides these items – your income?
Disability is one of those things we never expect to happen to us. Did you know that 90% of disabilities are due to illness, not accidents?
Like it or not, you have a 3 in 10 chance of suffering a disabling illness or injury during your career that would keep you out of work for 3 months or more.
Whether you are self-employed, employed by a job, or as an independent contractor, you owe it to yourself & your family to learn more about your options for Disability Income insurance. If you’re wondering whether or not you should insure your income, take a look at these 5 steps to help you make an informed decision.
Step # 1 – Determine if you need Disability Income (DI) Insurance
Figuring out if you need DI insurance is fairly simple and easy. If you have a job or earn income, you need it.
Step # 2 – Find out if your employer provides Disability Income (DI) insurance
According to the U.S. Department of Labor, more than 70% of employers don’t offer long-term disability coverage. Short-term or partial coverage wouldn’t be enough to meet your current and future financial obligations if you were unable to work for an extended period of time. Most employees that do have this benefit are unaware that their Group Long-Term Disability (LTD) coverage only covers a portion of their income. This portion is most likely taxable, further reducing the amount you’ll receive in income benefits down to about 43%. Could you live on less than half of your income if you were disabled?
Step # 3 – Ask Questions
Here are 5 basic questions you should ask if you have employer provided benefits.
- What percentage of my pay will I receive from this benefit?
- What is the maximum monthly benefit?
- Is there a waiting period before collecting benefits?
- How long will the plan cover me in my chosen occupation?
- Will the plan pay benefits if I am working at a reduced capacity?
Step # 4 – Talk to a professional
Be informed! Consult an insurance professional to review your current coverage and provide an expert’s perspective and opinion for your unique situation. If you don’t currently have Disability Income insurance or only have partial coverage through an employer and would like to discuss your options, contact us to have your questions answered.
Step # 5 – Get a FREE Quote
Once your questions have been answered and you’ve assessed your current situation with your employer and/ or a professional, get a FREE quote to customize coverage that fits your needs. There’s no obligation, we’re here to help!