Disability insurance is a type of insurance that protects your earning potential and replaces your income if you become unable to work after an accident or illness. It replaces a percentage of your earned income – as much as 70% of it – until you’re either able to return to work or reach age 67, through a check issued on a monthly basis. Even though it only replaces up to 70%, this replacement income comes to you free of tax. If the premium payment of your long term disability insurance is made with after tax dollars. So in essence, it becomes the equivalent of 100% of your pre-disability, pre-tax income.
Today, two thirds of American families live their lives on a paycheck-to-paycheck basis, and approximately 70% of families can survive without a paycheck for only a month before finding themselves in trouble. Statistically, any working individual is three times more likely to suffer an accident or illness with the potential to render them disabled on a long-term basis, than he or she is to die during their years in the working world. One out of every eight Americans is disabled, and the Social Security Administration denies most disability claims. So, the need for long term disability insurance is greater than ever, and its foundation is a sound financial plan.
Disability insurance will help you protect your monthly pay check if your health or an accident forces you out of work, which will help you make your mortgage/rent payments, handle day-to-day expenses and meet health costs. REMEMBER – YOU ARE A MONEY MAKING MACHINE THAT PRODUCE $100,000, $200,000 OR EVEN $1 MILLION EVERY YEAR. A short-term disability insurance policy helps you make these payments for the first 3 to 6 months, while a long term disability policy helps cover all of these expenses if you cannot return to work beyond that initial 3-to-6-month time period.
Long term disability causes not just emotional stress, but financial hardships as well. If you’re not financially secure enough to survive without income for the remainder of your life, you need to have a long term disability insurance policy in place to protect you (MONEY MAKING MACHINE) and your family.
Even if you are secure fiscally, disability insurance may be a wise investment. For example – if you went to work tomorrow and your employer cut your salary in half, what would you do? Obviously, you would quit and find another job, even if you could live on half a salary. So, when you become disabled, financially it is akin to your employer cutting your salary in half (or worse). The difference is that you can’t quit a disability!!
Most people with this kind of risk don’t have adequate long term disability insurance. They think they won’t need the money if they become disabled, or that they can’t afford disability insurance in the first place. These are not legitimate reasons to go without protection. For example, you would insure your entire home – not just one room, you’d insure your entire car and not just four tires. So why not protect yourself and your loved ones from the potential financial pitfalls of disability, as well as in the event of your death?
The best way to purchase disability insurance is to buy your own private policy. Most group policies or association disability insurance policies do not offer enough coverage and potentially may have many unknown or overlooked disadvantages. You can speak with BeamaLife’s expert advisor now at (877) 972-3262 to find the best disability insurance quotes for you. If you are physician, lawyer, engineer or self employed professional with more than 3 employees in your company then BeamaLife will be able to get you a substantial additional discounted disability insurance quotes.
BeamaLife compares plans from all major insurance companies (such as Guardian, MetLife, Mass Mutual, Principal, Mutual of Omaha, and Standard Life) to find the best and most affordable disability insurance policy. Please complete a quotes request form here.