Faith A. Bratlie – Insurance Broker

Disability

Short Term and Long Term Policy

Did you know that you’re more likely to become disabled for a period than to die?
Your most significant asset is your ability to earn money, so you need to ask yourself some questions: If I become disabled, how would I cover my living expenses? How will I be able to save for retirement? And because an overwhelming majority of disabilities are health related, can I afford the risk of being without a paycheck and possibly having increased healthcare expenses?

Short Term and Long Term Disability

Disability policies are used to help replace the income a person has lost due to an illness or accident. This can be anything from a short-term accident that only lasts 6 weeks, to a long-term illness that could last the rest of your life. The benefits are typically set up to be 60% of your gross income to account for unearned income like taxes when you’re fully functional. We at Faith Insurance Solutions help to find the highest benefits possible at the most affordable price for individuals, the self-employed, and businesses.

Protecting your income by purchasing disability insurance is a fundamental risk management strategy for all wage earners whose income is required to maintain their lifestyles. The two primary types of disability insurance include

Short- term:

Coverage will provide income replacement protection, usually after one week of disability, and will pay for up to six months.

Long-term:

This type of disability insurance kicks in generally at the six-month mark and continues until age 67

If you have disability insurance through your employer, you probably have only long-term disability coverage, and typically the coverage ranges between 60% and 70% of your current gross salary.

If you’re struggling to get ahead on 100% of your salary, how do you think your finances will work on 60% to 70% of what you’re currently making?