For most people their lifestyle is a function of what they earn for a living. Everything from where you live, the car you drive, the schools your kids attend, the amount you set aside for retirement and your next vacation are dependent on the income/revenue you bring home. No worries there, unless those dollars stop due to an unexpected illness or injury that keeps you from working. If your disability extends beyond the ability of your savings and investments to “float your boat,” what’s your plan? Rely on friends and family? GoFundMe??
I know what you’re thinking: hey I’m covered at work. Or I pay into the state disability plan so that’s got my back? Maybe. How about this? I’ll always be covered by Social Security Disability, right? Everything should be okay. Maybe, maybe not. Might be wise to examined the limitations of your “income safety net?” Here are some important points to check:
• What percentage of income will be covered and is there a cap?
• Will my bonus be included as income for calculating benefits?
• Will your disability payments be received tax-free?
• What are the definitions of disability?
• Are you covered for your own occupation or any occupation?
• What happens if you only partially recover and can only work part-time afterward?
• What happens if, upon your return to work, your income is reduced due to time away?
• If you’re a business owner, how has your absence impacted your bottom line and the value of your business?
Even if you participate in your employer’s group disability plan, gaps can be plugged with an individual policy. Several insurance companies offer programs that can provide enhanced protection for highly compensated employees at discounted rates. These portable policies are easy for the employer to administer and a great employee benefit to help attract and retain the best talent.
Whether you’re in your 20s and just starting out or in your 30s or 40s already hitting your income-earning stride, disability insurance empowers you to maintain you and your family’s lifestyle in case injury or illness creates a roadblock on your lifetime income path.
May is Disability Insurance Awareness Month. If you like your lifestyle, maybe you should insure it!
Take this opportunity to see how Blaze ‘n Bear Insurance Services, Inc. can help you maintain your lifestyle.