Disability Insurance


What would you say is your most valuable financial asset: your house, your car, your retirement account? For most people of working age, the answer isn't in their golden eggs but in the goose that laid them - their most valuable asset is their ability to earn money.

That's why one of the most devastating events that could befall a household is having a breadwinner become disabled for an extended period of time. Just over 1 in 4 of today's 20-year olds will become disabled before age 67, according to the Social Security Administration. Fortunately, long term disability insurance can cover the risk of becoming disabled due to an illness or injury. This type of insurance pays workers who have been off three months or longer with a disability. We believe this coverage should be part of everyone's basic financial plan.

The easiest and least expensive way to get coverage is through an employer's group plan. If your employer doesn't offer it, try trade or professional associations to which you belong. Failing those options, you can purchase an individual disability insurance policy. There are several advantages of an individual plan over a group- an individual policy is portable from job to job, premiums cannot change, benefits are generally not taxable and the definition of disability is more liberal. For these reasons, professionals like doctors, lawyers, and accountants often prefer buying individual disability insurance.