If you’re like most people, the idea that an injury or illness could render you incapable of working is almost unthinkable. Yet it happens. Disability insurance protects you and your family in the event that such a tragedy occurs.
Traditionally, employers have provided disability coverage; however, given today’s economic environment, that coverage is often eliminated. It’s important to make sure you have sufficient disability insurance, unless you have the wherewithal to continue to make 70 percent of what you were making when you were employed. The greater your family is reliant upon your income, the greater your need for disability insurance.
What should I consider when evaluating disability policies?
Price alone is insufficient. When choosing a policy, it’s crucial to look at definitions of disability, length, and when it starts, among other factors. For example, what does it mean to be unable to work? Does it mean to be unable to do anything or unable to do the job you were educated and trained to do? Many individual policies abide by the latter. It’s important to know exactly what you’re buying and how it will be paid out in the event of an injury or illness.
How is disability insurance paid out?
It can be paid out weekly or monthly. In addition, it can be paid out as a percentage of your income or as a specified dollar amount. The policy determines how much you’ll be paid, how soon after your disability that payments will begin to arrive, and when they will stop. The longer the benefit period, the higher the premium.
We can help you evaluate your disability needs and help select the insurance that’s right for you.
Plante Moran Insurance Agency is a member of the FINRA. Securities are offered through Valmark Securities, Inc., an unaffiliated securities broker-dealer. Member FINRA and SIPC.
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