Consider what may happen if, after an injury or illness, you were unable to return to work for days, months or years. Disability insurance may be a useful safeguard.
Do you have other means of support? Can you rely on your spouse for income to cover your financial obligations such as paying your mortgage or supporting your children? An individual disability policy is designed to replace approximately 60% of your gross income on a tax-free basis.
Disability insurance can also be designed to help protect you in several ways if you own a business whereby you can buy your partner’s business interest in the event he/she becomes disabled or protect you from the impact of losing an important employee.
It is important to consider three factors when selecting disability insurance.
The Definition of Disability: Does the policy contain an own occupation definition?
- Own Occupation Definition - The inability to perform the material and substantial duties of your regular occupation. This is the narrowest definition available.
- Regular Occupation Definition - Unable to perform the essential duties of your regular occupation.
- Any Occupation Definition - The inability to perform the duties of any occupation. A very broad definition, and one to try to avoid
- That the policy is non-cancelable: Your policy can not be canceled for any medical condition you may develop.
- That the policy is guaranteed renewable: Guaranteed to renew at the same premium each year.
Call the professionals at Bryant Asset to explore the benefits from a quality contract that a disability insurance policy can offer. Understanding elimination periods, benefit periods and the various riders available to you, such as inflation protection could make all the difference in addressing your needs for income during such a catastrophic event.