Prepare for the Unexpected
Your ability to earn a living is your biggest asset – so what would you do if you suffered an illness or injury that left you unable to work? Disability insurance is insurance for your paycheck ensuring that if you’re unable to work due to illness or injury you would still receive an income. According to a LIFE Foundation survey, ½ of working Americans couldn’t go a month without a paycheck before having financial troubles.
A lengthy disability can cost you millions: a 25 YO who earns $50,000/year and suffers a permanent disability could lose $3.8million in future earning.
Types of Coverage:
The main source of disability income protection is provided or sponsored by employers. There are two forms of coverage:
- Short-term disability coverage replaces a significant percentage of your income for about three months in most cases.
- Long-term disability coverage typically pays 40-60% of your base salary (pre-tax) for longer periods.
Check with your employer’s human resources department or benefits manager to see if there are coverage and purchase options your company may provide.
Fewer than 1 in 3 workers in private industry have long-term disability coverage through work.