Disability insurance is a morbidity product. Disability insurance is basically paycheck protection. And the price for that protection depends on your gender, age, smoking status, health history, current medical condition and vocation. It also depends on the length of coverage, the elimination period and owner occupation specialties.
When calculating your disability insurance amount you must take into account a few factors.
The first factor is how much money you will need to draw every month in case of a total disability whether it is from an illness or an injury. Most plans will limit your maximum monthly benefit to 70% of current income and most will reduce your benefit when you become eligible for SSI which is the federal disability program through the US government.
Next factor to consider will be how long can you live without drawing a monthly benefit? This is the elimination period. An elimination period can be 30-60-90-180-360 days before you begin to receive benefits. The longer the elimination period the lower your monthly premiums. If you find you need benefits in less time than 30 days, it may be necessary to purchase a short term disability plan as well as a long term disability plan.
The last factor to consider is the benefit period or how long you need benefits to pay in case of a total disability. Benefit periods can be as short as 2 years or can reach out to age 67 years old with many options in between. I highly recommend using an independent experienced disability broker to help you build the proper coverage for your unique situation at the best price possible.
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The first factor is how much money you will need to draw every month in case of a total disability whether it is from an illness or an injury. Most plans will limit your maximum monthly benefit to 70% of current income and most will reduce your benefit when you become eligible for SSI which is the federal disability program through the US government.
Next factor to consider will be how long can you live without drawing a monthly benefit? This is the elimination period. An elimination period can be 30-60-90-180-360 days before you begin to receive benefits. The longer the elimination period the lower your monthly premiums. If you find you need benefits in less time than 30 days, it may be necessary to purchase a short term disability plan as well as a long term disability plan.
The last factor to consider is the benefit period or how long you need benefits to pay in case of a total disability. Benefit periods can be as short as 2 years or can reach out to age 67 years old with many options in between. I highly recommend using an independent experienced disability broker to help you build the proper coverage for your unique situation at the best price possible.