Your income depends on your ability to earn it.
A sound financial plan should protect what's important – especially your income. Disability income insurance offers an extra measure of financial protection by providing income continuation in the event of a disabling injury or illness.
How does disability income insurance work?
Disability income insurance is designed to replace your income when you're not able to earn it. If you receive some coverage through your employer, it may cover only part of your income or it may be taxable, which further reduces its benefit. You may not be able to keep it if you change employment. Retaining your own coverage gives you more control.
You choose disability income insurance based on:
- Benefit Amount - The percentage of current monthly income you are replacing.
- Elimination Period – The time between the onset of a disability and the time you become eligible for benefits. Typically it is 30, 60, 90 or 180 days.
- Benefit Period – The period of time you are eligible to collect benefits while on a disability claim. A few possible time periods include: 2 years, 5 years, Age 65.
The importance of "Own Occupation" Coverage
Keep in mind that what you do for a living is important in this process. You must be careful when purchasing this coverage, because some policies will not pay if you can still work doing ANY job. For example, if you are a doctor and are too injured to return to your normal duties, but you are able to physically handle working a desk job, you could be forced out of your chosen occupation. That's why the policy feature called "own occupation" coverage is of utmost importance.
Hayes, Utley & Hedgspeth will work with you to find just the right policy to fit your budget and circumstances. Contact our advisor Glen Hedgspeth today or Get a Quote Now.
