Are You Insuring Your Most Important Asset?
When asked what the most important asset is that they need to insure, most people will say their home, car, or retirement account. Yet all of these wouldn’t exist without your ability to work. And, these assets could all disappear with the loss of your income.
Nevertheless, many people believe they don’t need disability insurance because they are young and healthy. However, most claims for disability benefits are actually for illnesses that could happen at any age—diabetes, cancer, heart attacks, or other illness. Additionally, there are injuries that can be sustained both on and off the job which can prevent you from being able to fully function in your specific occupation.
Of course, some people recognize the importance of disability insurance but believe an individual disability insurance policy is unnecessary for them because their employer offers disability insurance as a work benefit. However, there is a good chance that the amount it pays will not be enough to adequately cover living expenses such as housing and car payments, auto insurance, food, and electricity, or other bills. It also may not pay long enough in the event of a long term or permanent disability. Additionally, unlike an individual disability insurance policy, benefit payments from coverage through an employer are likely to be taxed.
You need to take yours and your family’s financial well-being into your own hands by making sure you have adequate disability insurance coverage that will pay out benefits tax-free and regardless of job changes.
Here are some of the reasons you should contact CEG Life Insurance Services to discuss your options regarding disability insurance coverage:
- Choose the amount that is right for you. You can typically qualify for somewhere between 50-60% of your monthly income as a benefit payment (if you are self-employed that percentage can be higher). It is important to consider what regular expenses you will need to pay for in the event of a disability and how much that will add up to be on a monthly basis. Even if you have coverage through work it may not be enough, especially if that benefit payment is taxed, which it likely will be.
- Choose the options you want. Even more than life insurance, disability insurance offers multiple optional benefits that are important to be aware of and consider for your particular circumstances. Additional options (riders) can include cost-of-living adjustments, non-cancelable rates, own occupation, residual income, return of premium, and future purchase options, among other many other benefits. Make sure you are talking to a qualified and experienced disability insurance agent that can explain all the options to you.
- Carry the insurance with you if you change jobs. With an individual disability insurance policy, you don’t have to worry about losing coverage if you change jobs, or if your employer decides to eliminate or reduce employee benefits. You can rest assured that regardless of changes in jobs, changes in where you live, or changes in your age or health, you will have coverage you need at a locked-in price.
- Tax-free benefits. If your employer is paying for the coverage, you’ll get stuck with paying the taxes on the benefits. However, if you purchase your own individual disability insurance policy you can rest assured that if you ever need to claim benefits, those payments will be paid out tax-free for as long as you collect them.
Call the experts at CEG Life Insurance Services to talk about short-term, long-term, and supplementary disability insurance coverage. CEG Life works with numerous insurance companies to find individuals the right options, coverage, and price to provide them the financial security they need for their individual circumstances and budget.