Disability Insurance

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Your most valuable asset is your ability to earn a living. Plans for the future-from buying a home, paying for college, to building a retirement nest egg-are based on the assumption the paychecks will continue until retirement. But what would happen if those paychecks stopped? That’s where disability insurance comes in. It provides a tax-free income as a salary replacement when unable to work because of illness or injury.

The financial consequences of a lengthy disability could literally cost millions. A 40-year-old worker who makes $75,000 a year and suffers a permanent disability could lose over $2 million in future earnings. People don’t hesitate to insure their homes, cars or other valuable possessions, so why not insure something that is much more valuable than all those things?

Benefits of Disability Insurance:

  • Disability insurance is designed to pay monetary benefits when an illness or injury prevents the insured for earning income. In this respect, it is an income replacement policy, which pays money when a disability arises from a cause recognized by the policy.
  • Monthly Income Benefits are paid out income-tax free.
  • A personal disability income policy is portable allowing the insured to keep it if they change jobs, as opposed to Group LTD.

Please keep in mind insurance companies alone determine insurability, and some people, for their own health or lifestyle reasons, are deemed uninsurable.

This information is not intended to be a substitute for specific individualized tax advice.  We suggest that you discuss your specific tax issues with a qualified tax advisor.