You need disability insurance as "paycheck protection". You should look at your current monthly budget and determine what needs to be covered if you were to lose your paycheck due to an accident or illness. 1 in 4 20 year olds will go on disability before they retire from work. You should look at the your expenses and determine what is the net amount of income that I could get by on.
Many people have disability insurance through their employeer. You have to be careful because this policy is usually paid "pretex" and is taxed upon your drawing income. You need to check your employeers policy to determine what your benefits are for disability.
Business Owners can get a disability policy to pay for their business income. What would happen to your business if you could not do what you do daily to generate income. Would you need to hire somebody? You can get a policy to cover this. Would your business stop working and revenue dries up? You may be able to cover this.
You need to work with an independent agent to compare the rates and benefits of multiple companies as they treat each situation different. An example would be a Physician who might be offered more income during their disability with a particular company. You would need to check to see if you receive benefits if you cannot work your current profession versus working at anything.
All paychecks need protection. You should have your evaluated and deceide how you would do if you became disabled.
Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
Disability insurance is part of defensive planning and should be considered as soon as you enter the work force. Most American workers have 90 days in cash reserve and could not maintain their lifestyle without income. Disability insurance is paycheck protection during times of protracted sickness and/or injury and can generate tax free benefits when you need it most.
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Many people have disability insurance through their employeer. You have to be careful because this policy is usually paid "pretex" and is taxed upon your drawing income. You need to check your employeers policy to determine what your benefits are for disability.
Business Owners can get a disability policy to pay for their business income. What would happen to your business if you could not do what you do daily to generate income. Would you need to hire somebody? You can get a policy to cover this. Would your business stop working and revenue dries up? You may be able to cover this.
You need to work with an independent agent to compare the rates and benefits of multiple companies as they treat each situation different. An example would be a Physician who might be offered more income during their disability with a particular company. You would need to check to see if you receive benefits if you cannot work your current profession versus working at anything.
All paychecks need protection. You should have your evaluated and deceide how you would do if you became disabled.