Disability income insurance provides a monthly cash benefit if sickness or injury
prevents you from working. The benefit helps replace a portion of your income so you can
continue meeting everyday expenses while you recover.
Most disability income policies are designed to replace up to 80% of your income,
often on a tax-free basis, depending on how the policy is structured. Coverage is intended to
protect your earning ability — your most valuable financial asset.
Key Factors to Consider When Choosing Disability Insurance
- Elimination period: How long you must wait before benefits begin
(commonly 90 days). - Benefit period: How long benefits are paid after a qualifying disability.
- Short-term disability: Typically provides coverage for 13 to 26 weeks.
- Long-term disability: Coverage may last five years or extend to age 67,
depending on the policy. - Partial or residual disability coverage: Whether the policy pays benefits
if you can work in a limited capacity — not just total disability.
Social Security Disability Benefits
Another potential source of disability income is the Social Security program. The Social Security Administration (SSA) administers disability benefits, but eligibility is based on being unable to perform any gainful employment — not just your current occupation.
Social Security disability benefits may be subject to federal income tax if your combined income exceeds certain limits. For additional details, visit socialsecurity.gov.
Choosing the right disability insurance plan can be confusing, and coverage varies widely.
Our team can help you understand your options and select coverage that fits your needs and budget.
Call us today to speak with an advisor and learn more about protecting your income.
