Could You (or Your Business) Survive a Disability?
One of your greatest assets is your ability to earn an
income. If you were to lose that ability due to a disabling
accident or illness, how would you pay your bills, send your
kids to college, or save for retirement?
A disability can create substantial economic hardship for
individuals and their families. As a business owner, both
your personal finances and your business could be at risk.
One way to help protect against the Financial loss
associated with a disability is to purchase disability
income insurance. If you pay the premiums, an individual
policy can provide you with a tax-free income stream while
you are unable to work.
Weigh Your Options
When evaluating disability income insurance policies,
it’s helpful to consider the following.
 | Definition of disability—You can
typically choose between “own occupation”
coverage and “any occupation” coverage. With
“any occupation” coverage, you can claim
disability only if you are unable to perform
any type of job. This type of coverage is
generally less expensive than “own
occupation” coverage.
|
| Amount of monthly coverage — You can
purchase disability insurance that will
replace a certain percentage of your income
—normally up to 50 or 60 percent of your
pre-disability income. You should purchase
coverage that will enable you to meet your
monthly Financial obligations.
|
| Waiting period —The waiting period
represents the amount of time that must pass
between the date you become disabled and the
date that disability income payments begin.
The longer the waiting period, the less
expensive coverage will be.
|
| Benefit period — The benefit period can
range from several months to life. The
longer the benefit period, the higher the
cost of insurance. |
|
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A disability income insurance policy could make the
difference between Financial security and Financial
hardship. Don't wait to consider this protection until it’s
too late
