Also known as income replacement insurance, this coverage is vital to protecting your income when you can no longer work due to severe illness or accident.
Ideally, having 3 months of income saved will help reduce the risk associated with a disability. Unfortunately, in these modern economic times savings are at an all time low and the extra savings are not always possible.
If you have a group benefits program you may already have some coverage, but in order to keep costs of benefits down many employers have been forced to either reduce or eliminate the disability insurance portion of the plan.
If you are unsure of your coverage check with your Human Resource department or contact us and we can help you with a complete review of your employee benefits program.
Consider your personal situation, if you were disabled where would the money come from?
- Spouse’s income – could you pay all your bills on one salary?
- Saving account – 3 to 6 months income is required
- Retirement savings – fee’s and taxes would have to be paid and may cause long term damage to savings goals
- Friends and family – short term loans or gifts, not a long term solution
- Government – some benefits are available only if disability qualifies as being severe and prolong, meaning you will be disabled for the rest of your life.
A disability may last months or even years however the economic impact and potential loss of current assets can put your current assets and a comfortable retirement at risk. Transferring the risk to an insurance company can prevent all this.
Contact us if you would like to learn more, or to compare plans and purchase online.