Itâ€™s hard to imagine an illness or ailment could keep you from working for an extended period of time. If this were to happen to you, how would you cover lost wages? This is where disability insurance comes in. Purchasing disability insurance covers lost wages in the event of illness, injury or accident. Coverage you purchase typically pays lost income until age 65, 67 or 70, but the time periods do vary depending on the policy.
Why do you need Disability Insurance?
According to Life Happens, thereâ€™s a large gap between those who think they need disability insurance and people who actually have it. While 48 percent of individuals think itâ€™s important to have this coverage only 20 percent actually have it. You may have some disability insurance coverage from your employer, but is it enough?
There are going to be limitations with the employer provided coverage. These include only 60 percent of your salary being covered and itâ€™s a taxable benefit. This takes more of the pay you were previously receiving away and, as a result, creates a larger gap. Itâ€™s important to figure out what you will need covered and discuss with your agent add-ons that are available. Our resident expert in all things disability insurance, Nick Deas, suggests getting additional coverage that increasesÂ the percentage of your pay you receive, adjusts for cost of living for younger clients, and carries over between jobs if career changes take place.
For more information or to discuss your options please call, (352) 371-7977, or email, [email protected], Nick Deas, and he will answer any questions you may have. May is disability insurance awareness month so beÂ sure to check out all the resources available during this time.