Disability Insurance Articles
What To Know Before Setting Disability Insurance Limits
2011-07-19
When you are looking into signing up for a disability insurance plan, you need to consider a number of factors when deciding where the parameters of your disability insurance limits should be set. Consider the main reason why most people get disability insurance: you never know when an injury or illness is going to render you unable to work. Disability insurance protects you from a catastrophic injury that prevents you from returning to work. For most people, disability insurance will pay out close to 65% of your salary before taxes. In most cases, this is an adequate insurance payout because the payout is tax free. This will allow you to maintain your current level of comfort while your injury heals enough for you to resume your job.
Why is disability insurance something that is important for you to have? Because labor statistics show that, in the US, a disabling accident happens almost every second and your health insurance will only pay for your medical care. If you suffer an injury or illness that keeps you from working, disability insurance will allow you to pay your bills on time.
In order to determine which disability insurance policy works best for you, consider how much your monthly income is. For many people, their monthly income does not exceed $10,000 per month. In that case, most standard disability insurance coverage will be sufficient. However, if your monthly income exceeds that amount, it would be prudent to get a high-limit disability insurance policy. If you have any question about which type of policy is right for you, check with your insurance agent to make sure that your monthly income does not exceed the disability insurance limits on your policy. If it does, or even if it is close to the limit, you need to change the limits on your policy.
Serious illness or injury can be devastating to you and your family. It is bad enough that your quality of life may be impinged by a physical inability to take part in your favorite leisure activities. It is even worse that such an unfortunate event could cost you your home, lifestyle and your income.
Talk with your insurance agent and financial advisor to make sure that your disability insurance coverage is strong enough to protect you in the event of one of these unfortunate circumstances. Hopefully, you will never need to use your disability insurance policy. However, having the wrong policy without enough coverage can compound one of these situations and turn it from an inconvenience into a life changing disaster that devastates you and your family. Take some time today to protect you and your family from catastrophic illness or injury.