What if you could no longer work due to an injury or an illness? It’s something that we never want to think about but it’s better to prepared. If you did end up hurt or ill and were not able to work, how would you pay your bills and your family’s standard living expenses? Even if you have disability insurance through your employer, it might not be enough. The Financial Guys, serving western New York and beyond will help you determine your disability insurance needs.
What does disability insurance cover?
Disability insurance replaces a portion of your income if you become ill or are injured. You may use this income to pay your typical living expenses. Each plan or policy defines what’s considered to be disabled. It’s important to understand the terms of your policy so that you know when you can use it and when an injury or illness won’t be covered.
How much disability insurance do I need?
How much disability insurance you need will depend on several factors. Those factors may include the percentage level of your income that you’d need in order to pay for your obligations and expenses related to your family. The Financial Guys will assess your insurance needs based on your specific situation.
Why may I need more if I have disability insurance through my employer?
Payments received from employer sponsored disability insurance plans may be taxed, which will reduce the amount of income that you receive if you need to use it. Some disability insurance policies that you purchase yourself may provide you with better tax options and you may also be able to receive a higher percentage of income replacement through private plans. The Financial Guys will go over all of the options with you.
If I need to use disability insurance, will I have a waiting period before I can start using it?
That depends on the disability insurance plan that you opt into or are a part of. Some policies require a specific waiting period before payments begin. This is a concern that we will discuss with you in further detail when you meet with us.
Many people believe that they are fully protected through employer sponsored insurance or through other types of insurance policies that they have. As with anything that concerns your family’s financial well-being, it’s better to be prepared and make sure that you’re protected. The Financial Guys will help you determine your disability insurance needs so that you can have the peace of mind of knowing that your financial obligations will be taken of in the event of illness or injury.
This material is not intended to replace the advice of a qualified tax or legal professional. Before making any financial commitment, consult with your tax adviser or attorney.