Long-term Disability Insurance
If you’ve got a goose that lays golden eggs, would you insure the golden eggs, or the goose that lays them?
Health Insurance only covers some of the costs you incur during an illness or injury, but without Disability Insurance, how will you pay for things like your mortgage, utilities, groceries, and childcare if the unthinkable happens and you can’t work?
Things to consider when protecting your income with disability Insurance:
How much do you need? If you’re unable to work for an extended period of time, how much coverage would you need? Insurers usually replace a percentage of income; that amount is usually up to 60%, with a non-taxable benefit.
This is simple, the waiting period is how long you have to wait before you begin receiving benefits. The typical waiting period is 90 days; however, this can vary with other factors such as: Is there short-term disability in place with a longer benefit period? Does your employer provide a salary continuation plan? Is there another plan in place to cover your bills for up to 180 days before the disability insurance would be needed? We recommend 90 days as this could be the difference of tens of thousands of dollars for you and your loved ones.
Each company and each policy will have different benefits and features that are included. These can vary widely from policy to policy, such as the way a partial disability claim is paid. Partial disability is usually described as a loss of income, time, or duties, but not a total inability to work. Other ways the policy can very is rehabilitation and return to work benefits. Your Policy Wizard will be able to provide you side-by-side comparisons of all major carriers, helping you easily see your options and choose what’s most important to you.
These are features to a policy that do not come built in or standard to a disability policy. You can add them at an additional cost. Examples of some available riders are
- Benefit increases without additional underwriting
- Inflation protection
- Retirement contribution protections
- Student loan repayment
As you can see there is A LOT to get a handle on. We know its human nature to put off complex and challenging choices, but please don’t put off a decision that could ultimately be the most important decision you ever make. Contact a Policy Wizard today.