Broker Check

Disability Income Insurance

Here at Investment Insight Wealth Management, LLC we understand how important planning for the future is. While no one ever plans to become hurt and unable to work, many people don’t have a plan in place should the worst happen. What will you do if you cannot work and pay your bills? Disability income insurance can help cover the gaps while you heal.

Disability Income Insurance Defined

Disability income insurance provides income to the policyholder, if the policyholder becomes sick, or gets injured and cannot work. It provides a substitute of no more than 80% of income, on a tax-free basis, should your injury or illness prevent you from earning an income in your occupation.

Before choosing a disability income insurance policy, you need to consider: whether or not there is a waiting period before your benefits will start, whether the policy covers short and long term disabilities, and whether or not the policy includes a disability resulting from an accident or an illness.

Your benefits are typically paid on a monthly basis so that you can continue to maintain your standard of living and pay your bills while you are unable to work. Many products are available to choose from, allowing you to choose an insurance plan that works best for your situation. Many times, the plans can be tailored to suite your needs.

Pay attention to the terminology used in your policy. Many policies will include exclusions for illness or injury as a result of pregnancy, war, or self-inflicted injuries. If your injury occurs on the job and is covered by workers compensation, your disability insurance payments may be reduced by this amount, so you cannot earn more income by claiming the incident on both Workers Compensation insurance and your disability insurance.

Have a Question?

Thank you!