Disability Insurance

Disability insurance covers the loss of your income when you can’t work because of an accident or injury. Most insurance policies will pay out between 50 and 85% of the salary you received before the incident that caused your disability. We can help you select the coverage that will cover your basic living expenses while you’re unable to work. Your disability insurance will probably have a maximum allowable benefit, but the disability income may be tax free if you purchased the policy and paid the premiums yourself. There may also be a limit to the length of the benefits and a waiting period before you can claim disability benefits. We’ll go over the details of your policy with you to ensure you have the coverage you need.

Long-term disability insurance doesn’t usually start right away with the incident that renders you unable to work. There may be a few weeks or even months between your last paycheck and your first disbursement from long-term disability insurance. As far as the length of coverage, it depends on the type of policy you have. With long-term disability insurance, you may have a certain term limit for coverage, which will be specified in your policy. Sometimes, you can receive benefits until you reach retirement age. However, you may also have to meet certain requirements. For example, to qualify for continued disability benefits, you might have to prove you’re unable to work in any job instead of just your chosen career field. If you recover enough to go back to work, your disability payments will cease.

Short-term disability insurance usually offers 40 to 70% of your salary in benefits for a few weeks up to a year. Short-term disability insurance will make up for lost wages while you’re unable to perform your current job duties as a result of an illness or injury, such as a broken leg. Long-term disability insurance provides you with an income if you’re unable to work in any job for a long period of time. This means you may not qualify if you can switch careers and work for a different company. But if you’re unable to work, long-term disability insurance can provide coverage until you’ve either recovered enough to work or have reached retirement age.

Who Needs Disability Insurance?
If your family relies on your ability to earn money, consider purchasing disability insurance. This type of
policy can cover your living expenses and protect your family from the financial hardship caused by the
loss of your paycheck.

How Does Disability Insurance Work for the Self-Employed?
If you’re self-employed or your employer doesn’t offer disability insurance, you can purchase your own
private insurance policy. Our financial advisors can help you select the policy that works best for your
financial situation.

Do I Need Both Short-Term & Long-Term Disability Insurance?
Short-term disability is helpful if you have limited savings or are living paycheck to paycheck. Losing your
salary even for a short amount of time can cause severe financial hardship for your family. Even if you’re
unable to work for just a few weeks, you still need to pay the mortgage or rent and shop for groceries.