Disability Insurance: How it Works and Who Should Buy it

Disability insurance is a type of insurance that provides financial assistance to people who are unable to work due to an illness or injury. It can help replace lost income, pay for medical expenses, and cover other living expenses.

There are two main types of disability insurance: short-term disability insurance and long-term disability insurance. Short-term disability insurance typically covers you for a period of 3 to 6 months, while long-term disability insurance can cover you for a period of 2 to 10 years or more.

To qualify for disability insurance, you must be unable to work in your own occupation. This means that you cannot perform the duties of your job, even with some modifications. You must also be under the care of a doctor and be unable to work for a certain period of time, which is known as the elimination period.

The amount of money you receive from disability insurance depends on the type of policy you have and your level of coverage. Short-term disability insurance typically pays a percentage of your salary, while long-term disability insurance can pay a percentage of your salary or a fixed monthly amount.

There are a few things to keep in mind when considering disability insurance. First, the cost of disability insurance can be expensive. Second, you will need to be approved for coverage by the insurance company. Third, disability insurance does not cover all illnesses and injuries.

So, who should buy disability insurance? If you are a wage earner who relies on your income to pay your bills, then you should consider buying disability insurance. Disability insurance can provide you with peace of mind knowing that you will have financial assistance if you become unable to work.

Here are some additional tips for buying disability insurance:

• Compare quotes from different insurance companies.

• Make sure you understand the terms of the policy.

• Consider buying an inflation rider to protect your coverage from inflation.

• Buy disability insurance as soon as you can, while you are still healthy.

Disability insurance can be a valuable financial tool to protect your income in case of an illness or injury. If you are considering buying disability insurance, be sure to do your research and compare quotes from different insurance companies.

Here are some of the benefits of disability insurance:

• Replaces lost income

• Covers medical expenses

• Covers other living expenses

• Provides peace of mind

Here are some of the people who should consider buying disability insurance:

• Wage earners who rely on their income to pay their bills

• Self-employed people

• People with a high-paying job

• People with a young family

If you are unsure if disability insurance is right for you, talk to an insurance agent. They can help you assess your needs and find the right coverage for you.

Disability Insurance: An Essential Piece of Financial Protection

Disability insurance is an important part of any financial plan. It provides income protection in the event that you are unable to work due to a disability. This type of insurance can help you maintain your standard of living and meet your financial obligations if you are unable to work for an extended period of time.

One reason to consider disability insurance is that the likelihood of experiencing a disability at some point in your life is higher than you might think. According to the Social Security Administration, one in four 20-year-olds will become disabled before they retire. This means that even if you are young and healthy, you could still be at risk of experiencing a disability that prevents you from working.

Another reason to consider disability insurance is that your employer's group disability insurance may not be enough to meet your needs. Many employer-provided plans only offer partial income protection, and they may not cover the full range of disabilities that could prevent you from working. In addition, employer-provided plans may have limits on the amount of time they will pay benefits, which means that you could be at risk of losing your income if your disability lasts longer than the plan allows.

By purchasing your own individual disability insurance policy, you can ensure that you have the income protection you need in the event of a disability. This type of insurance can provide you with a steady stream of income that can help you meet your financial obligations and maintain your standard of living, even if you are unable to work for an extended period of time. It's an important part of any financial plan, and one that you should consider as you plan for your financial future.

Do You Have Trusted Advisors On Your Team?

Every business owner needs a team of trusted advisors.

If you’re a business owner, you are used to wearing a lot of hats. Still, you can’t be an expert at everything, which is why it’s important to build a network of trusted professionals that you can turn to for help whenever the need arises.

No matter how successful you are, there are plenty of reasons to establish a professional network. In addition to exchanging contacts and referrals, there’s also the opportunity to share ideas and receive free advice from specialists in their field. And, much like getting a second opinion on a medical procedure, your network can act as a system of checks and balances by making sure you weigh all your options.

Ask yourself: Whom should you invite to be part of your network? While the members may vary depending on your strengths and weaknesses, your team should probably include some—or all—of the following professionals:

Attorney: Unless you have in-house council or a legal background yourself, an attorney—especially one with some experience in your industry—is almost a necessity. Among other things, an attorney can help defend you and your company from potential lawsuits, review contracts, and help with succession planning.

Accountant: While most people only use their accountant during tax season, business owners will find that an ongoing relationship can save them money in the long run. Not only can an accountant keep you from running afoul of the IRS, they can also show you how to structure your business and become a more tax-efficient operation.

Banker/Financier: As we all know, cash flow is the lifeblood of any business. And in today’s restrictive lending environment, having a banker in your corner can be a real boon. By providing easy access to credit, or letting you hear about the most favorable rates, a banker can be an invaluable addition to your team.

Insurance agent: A professional insurance agent can help you prepare for a number of critical business issues. Specifically, an insurance agent can help your business overcome the loss of a key employee, enhance your executive benefit package, fund a buy-sell agreement, and protect your family’s future by insuring your business interests.

As you can see, there are a host of advantages to creating a network of professionals with expertise in their field. Best of all, it’s a win-win for all parties, so setting one up may be easier than you think.