Lead Consultant
Jed Maslowski
AZ License 134466 |
About Disability Insurance
Many
people never insure one of their most important assets…their own income.
Health insurance will cover your medical bills, but who (or what)
will cover your mortgage payment, your phone bill, your cable bill,
your car payment, etc., if you are no longer working due to an
illness or injury? Credit cards last only so long before the
debt spirals out of control, and soon you will be forced to rely on
family members and loved ones for financial support.
Disability insurance is an effective method for protecting your
income and your lifestyle when you need it most.
Aside from personal disability insurance, business owners may
also consider Business Overhead Expense
insurance, which will cover monthly business expenses, and Business
Reducing Term insurance to cover large business loan payments.
For more information regarding business insurance options, please
call or email us directly. See the
Contact Us
page for details. |
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Short Term Disability Insurance
This type of coverage is created for individuals who are going to miss
LESS than three months of work due to an illness or injury. In
addition, these individuals DO NOT have sufficient funds in an emergency
savings account, and are living from paycheck to paycheck. Many times,
short term disability insurance will be offered by your employer, which can
usually be less expensive than owning a personal short term disability
policy. There are some disadvantages to owning a policy through your
employer, however, those disadvantages usually effect long term disability
policies more so than short term disability policies. Read below for
more information. |
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Long
Term Disability Insurance
This
type of coverage is created for individuals who are going to MISS
more than three months of work due to an illness or injury.
In fact, most individuals who require long term disability insurance
will miss, on average, about 18 months of consecutive work.
Without a proper long term disability policy in place, the effects
of a severe injury or illness can be financially devastating to
everyone around you. Roughly 45% of all home foreclosures are
from individuals who were ill-prepared for such an event. Like
short term disability insurance, many times long term disability
insurance will be offered by your employer, which can usually be
less expensive than owning a personal short term disability policy.
However, there are some disadvantages to owning a policy through
your employer, and those common differences are listed below.
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Employer Offered |
Individually Owned |
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Typically
less expensive premiums.
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Most employer policies are
"generic" and DO NOT have many of the key features that are
included in personal policy (ie. True Own-Occupation).
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Policies are
not flexible. You take it or leave it.
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Most importantly...The monthly
benefit you would receive will more-than-likely be
considered taxable income at the end of the year!
In other words, you may receive a monthly benefit of %60 of
your income, however, you must set aside portion of that
benefit to cover your taxes at the end of the year.
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Premiums are usually more
expensive.
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Personal policies have many
more optional features that can greatly help you should you
need to begin collecting benefits.
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Policies are very flexible.
When discussing your policy, a variety of options will be
available to you which can modify your premium.
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Monthly benefits ARE NOT
considered taxable income. It is unnecessary to set
aside a portion of your monthly benefit for tax
consideration at the end of the year.
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