Disability Income

What will happen if you can no longer earn an income?

Each year, approximately one in eight people becomes disabled. Unfortunately, many of them have to worry not only about their health, but also about replacing their income. Most people are provided disability insurance through their employers, but the self-employed, the professional, and the new business owner are challenged with finding adequate disability coverage in the type and amounts they need. If you are dependent, on your own, or on your spouse’s ability to earn income, disability insurance might be your single most important insurance requirement—disability insurance can make a difficult time financially manageable.

Disability income insurance pays benefits that generally replace 50%–70% of your earned income when you can’t work due to illness or an accident. Although the government provides a base coverage to all workers, this benefit is the most difficult for which to qualify. And although your employer may provide you with comprehensive short-term and long-term coverage, even that may not be sufficient for your needs.

Who needs disability insurance?

Individuals whose salary represents their family’s sole (or primary) source of income are ideal candidates, as are individuals who could not afford to maintain their lifestyle if their occupational income were interrupted. Admittedly, this definition includes most people. But there are those who should not consider disability insurance: the retired, certain government workers who are explicitly covered under state or federal law, part-time workers who are not relying on their income as a principle source of wealth and those who are wealthy enough that their investment income will be sufficient to sustain their lifestyle.

Disability insurance is an integral part of risk management and a product we always consider when developing a financial plan. Working with the experienced professionals at Ingenuity Financial Services will help you define your financial situation and understand the options available to you. With this knowledge you will be able to make sound decisions which will help secure your financial future.