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disability insurance

Income Replacement with Disability Insurance

Most individuals understand the need for traditional life insurance. It pays a death benefit in the event a loved one, such as a spouse, dies prematurely. The death benefit is there to provide income for expenses, and to fund future expenses such as college or the surviving spouse’s retirement. While not overlooked, a seldom though about income replacement tool is disability. Disability insurance should not be ignored, and arguably should be considered as a higher priority than life insurance. This is because statistically, an individual has a higher chance of becoming disabled, than dying prematurely. Especially if they’re young. Most disability policies are offered through an employer as benefit for employees. Typical policies provide 60-70% of income replacement in the event the covered employee becomes disabled. When initially getting disability insurance, it’s important to pay close attention to the definition of disability in the policy. This definition will determine whether […]