If you can afford it you should purchase the maximum individual disability coverage based on your annual compensation and contributions to your retirement plan. The statistics of experiencing a disability once in your working life is extremely high and the period of disability averages 30 months. You should buy term life insurance and spend the difference on disability insurance.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
How much disbility insurance should you buy? A combination of the most you can get and what you can afford. If you already have group insurance in place, usually you can only buy up to 70% of your wages combined between individual and group. If group is not in place you can buy individual coverage up to 70% and combine with group later to actually insure more than 100% of your income.
The hard part with how much coverage should you buy is how much will it cost? Getting the full level of coverage can be pretty hefty as far as premium goes.
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The hard part with how much coverage should you buy is how much will it cost? Getting the full level of coverage can be pretty hefty as far as premium goes.