Disability Insurance

It is an insurance product designed to replace anywhere from 45-70% of the gross income on a tax-free basis should a sickness or illness prevent you from earning an income in your occupation. Every disability insurance policy from every insurance company is very different, and this is not a product to simply shop for the most competitive rate.

Who should consider a disability policy?
• Those whose employers do not provide such benefits,
• self-employed individuals who desire disability coverage
may purchase their own policies on the open market. Premiums and available benefits for individual coverage vary considerably between different companies, for individuals in different occupations, and by State and County. In general, premiums are higher for policies that provided more monthly benefit, pay the benefit for a longer period of time, and start payments for benefits more quickly following a disability. Premiums also tend to be higher for policies that define disability in broader terms, meaning the policy would pay benefits in a wider variety of circumstances.