Your most valuable asset is your ability to earn a living. If you are unable to work, disability insurance will pay you a monthly income so that you can pay your bills. Most people regard a disabling injury or illness as a remote possibility, but the statistics tell a different story.

Here are some pivotal questions to ask about disability income coverage:

• How will you get the money to pay your bills if you become totally disabled?
• If you have disability coverage through work is it adequate?
• Will Social Security pay and how do you qualify?
• What are the appropriate features of a disability income policy?
• Will your disability income policy pay if you are only partially disabled?
• Will your benefits increase while you are disabled to keep pace with inflation?
• Are disability income payments taxable?

Disability income insurance is as important as medical insurance. Assume that a 35-year-old earning $100,000 per year suffers a permanent disability and can no longer work. He will lose an income stream of $3 million over the next 30 years. Shifting the risk of this income loss through disability income insurance really makes sense.

Many employers offer group disability coverage as an employee benefit. That is an excellent benefit and can serve as the foundation for your disability coverage, but it is typically not adequate by itself for several reasons:

• The definition of disability contained in most group policies broadly interprets the ability to work thereby reducing available benefits by any earned income.
• Group disability policies typically pay only 60% of your income – realistically only 40% since payments are taxable. There will often be a cash flow shortage as a result.

A wrap policy (increased protection that is purchased personally) may be appropriate to ensure adequate income protection.

Whether you have disability coverage through work or presently do not have any coverage, we will help you understand the important aspects of disability income insurance policies and help you select the right one for you.

At Lang Financial, our hallmark is to answer your questions, help you explore your options and assist you in making the right decision.
Contact us.