How does Disability Insurance protect you? By protecting your INCOME.
Unless we are fortunate enough to have a partner who makes enough to support our lifestyles, most of us would undergo substantial hardship by losing our source of income due to a disability. Even short term disabilities can quickly deplete the reserves some of us have stashed away for emergencies. Long Term or permanent disabilities can be devastating to even high income earners.
Having Disability Insurance does not provide you with 100% of your original salary, but can replace approx 70% of it so that you at least have some time to regroup and evaluate your employment and lifestyle situation.
It may be possible to live on 70% of your income, even indefinitely. It is not possible to live with no income at all. That is the protection Disability Insurance provides.
Disability Insurance Protect You in the event that you are injured or become sick to the extent that you can no longer perform your work duties. In reality, disability insurance is paycheck protection. Social Security disability benefits can help, but not significantly. Employer sponsored group benefits may have short term disability that can supplement your cash reserves or your emergency money. Disability insurance can protect up to 60% of your compensation with tax free benefits. If you qualify as a business, you may be able to deductible the premium cost and cover up to 80% of your compensation, but taxable.
.JPG){kind=avatar}
Unless we are fortunate enough to have a partner who makes enough to support our lifestyles, most of us would undergo substantial hardship by losing our source of income due to a disability. Even short term disabilities can quickly deplete the reserves some of us have stashed away for emergencies. Long Term or permanent disabilities can be devastating to even high income earners.
Having Disability Insurance does not provide you with 100% of your original salary, but can replace approx 70% of it so that you at least have some time to regroup and evaluate your employment and lifestyle situation.
It may be possible to live on 70% of your income, even indefinitely. It is not possible to live with no income at all. That is the protection Disability Insurance provides.