Disability Insurance
For most working Americans, their lifestyle depends on their ability to earn an income. Disability insurance is income insurance. If you can’t work because you’re sick or injured, disability insurance will pay you money so you can pay your bills.
Even if you have disability insurance at work, it might not be enough. Most group disability plans will replace 60% of your base salary, and this is often taxable.
Here’s an example
Monthly salary
Tax rate
After tax take home pay while working
Group LTD benefit
Gross LTD benefit
After tax take home pay while disabled
Monthly shortfall despite a solid LTD plan
$5000
25%
$3750
60% and taxable
$3000
$2250
$1500
If you have group insurance, ask yourself if you could live comfortably on what the group plan provides. If not, ask yourself how long you’d be able to pay your bills if your income completely stopped because of an illness or injury.
We will review your existing coverage, assess your needs, and make an objective recommendation on how to resolve any potential gaps in income protection.