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How Much Disability Coverage Should I Have?

    This is a question that you should have asked yourself and found an answer before now but realizing that this is an area that requires a decision that can easily be put off while you think about it we will give you a few things to think about.

    Of the decisions concerning disability coverage “How much coverage” is actually the easiest decision? Disability insurance is designed to protect your income in the event you are unable to work. Since the amount of coverage you are allowed to carry is limited to 60 to 70% it would make sense that you should have all the company will issue. The benefit comes to you tax free in the event of a disability so theoretically if you will not have to pay taxes you should continue close to the same income you enjoyed while working. We believe the answer to “how much coverage”? is all you can get.

    The real question is how long can you go without the benefit? They call this the elimination period. They usually run 30, 60, 90, 180, 365, or two years. The longer you extend the time when you receive the benefit the lower the cost. We would recommend you have all the coverage you can get and an elimination period with a premium you can afford rather than a shorter elimination period with less benefit.

    Your friends and loved ones may be able to help you for 180 days, However if you will require financial assistance the rest of your life, they may not be willing or able to participate.

    Another thing you should pay close attention to is the coverage limits. Not all policies cover the same things so make sure the policy you are looking at has exactly what you want. An example would be “own occupation” definition of disability. In the event you cannot do what you do, you receive the benefit.

    Of all the assets you have, there is most likely none more valuable than you and your ability to bring home a paycheck. Give us a call and make sure you have exactly what you want to have in the event of a disability.