Disability insurance is a very important consideration for all individuals earning an income. For both business owners as well as those just entering the workforce, securing the disability insurance policy best for you will give you peace of mind. In general, disability insurance is designed to provide you with a portion of your income, usually 60%, in the case of illness or disability that lasts beyond 90 days. Even at 60%, the amount of income provided by disability insurance payments can be the difference for millions of people without an income for that time. Even for employees in their 20’s disability insurance is a critical step in security. Still, there are many considerations when choosing a policy. Read our tips below to become more informed on this important step in securing your financial wellness.
It is Based on Income
The income you will receive under disability insurance, should you become sick or disabled, will be based upon your past income. Consider this when choosing your policy. For business owners and entrepreneurs who have a fluctuation in income, you may be asked to provide a number of past W-2s in order to arrive at an average income amount.
Secure Disability Insurance While Well
If you are considering a disability insurance policy, it is good practice to explore, shop and secure the policy while you are in good health. In general, the premiums will be most favorable when secured while in optimal health. Some policies require underwriting and a physical exam, lab work and medical history.
Consider your occupational risk for incurring a disability. Your disability insurance agent will, too. For example, some jobs are very high-risk. Lines of work such as power line employees, firefighters and similar occupations naturally pose more of a risk of sustaining a disability than other jobs do. Take some time to consider the risk of disability your job brings and discuss this openly with your agent.
Keep In Mind When You Will Retire
More and more people are working past the previous standard age of 65. Millions retire much earlier, too. Consider when you will firmly retire for good. It is usually fine to drop disability insurance once you are retired permanently since by nature it is for illness or disability incurred while working. However, also consider if you will work part-time or freelance and to what degree upon retiring from a full-time career as well as how much disability or illness risk that flex time work will bring.
Compare Policies & Be Open
The best policy when discussing policies is to be very open and honest when discussing disability insurance. What are your goals, fears and concerns? From there compare policies with your insurer to agree upon the one that is the best fit for you, your family and your long-term needs. Remember from the onset of starting a career to retirement many things will change. Some drastically. Income, employment role, disability risks the list goes on. All of these items are topics for discussion with your insurer as you settle upon the policy best for your situation.
Care Financial is a privately owned and operated business providing families, individuals and businesses with comprehensive wealth management strategies. Contact us online at www.carefinancialonline.com or call us at 251-633-7122.