Disability Insurance benefit is based on your current monthly income. You should calculate how much your current monthly expenses are and determine the net benefit needed. If you have Disability Insurance through your employer then you will need to determine if the benefit is pretax or post tax. A pretax benefit paid by your employer means that you will be taxed when you receive benefits. Your net benefit would be substantially lowered after you pay taxes. You can supplement your work policy with an Individual Disability policy to make up the difference to meet you monthly expenses.
An Individual Disability policy is underwritten by the company so will have to qualify based on health, age, tobacco, your occupation, and amount of your monthly income. Each company will have limits as to how much of your income you can cover with your policy. The percentage is usually between 67% and 70%.
You should work with an Independent Agent and determine the best option for you. They will need to know your expenses, income, and the amount of benefit needed. The Agent will need to look for the company that best fits your desired benefit.
How much of your current income does it take to pay your bills now? You should have at least that much Disability Insurance, if you can get that much.
Everyone knows that when someone undergoes an injury or illness major enough to cause a long term disability, there are probably going to be some lifestyle changes made to compensate for the extra expenses and loss in income. But you want to purchase enough Disability Insurance to at least pay the important bills so that your home and other basic needs are covered.
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An Individual Disability policy is underwritten by the company so will have to qualify based on health, age, tobacco, your occupation, and amount of your monthly income. Each company will have limits as to how much of your income you can cover with your policy. The percentage is usually between 67% and 70%.
You should work with an Independent Agent and determine the best option for you. They will need to know your expenses, income, and the amount of benefit needed. The Agent will need to look for the company that best fits your desired benefit.
Everyone knows that when someone undergoes an injury or illness major enough to cause a long term disability, there are probably going to be some lifestyle changes made to compensate for the extra expenses and loss in income. But you want to purchase enough Disability Insurance to at least pay the important bills so that your home and other basic needs are covered.