Do you need disability insurance?

Nobody likes to think about living with a disability, but according to the American Council of Life Insurers, one-third of all Americans between the ages of 35 and 65 will become disabled for more than 90 days, one in seven for more than five years. Many people think a disability is caused by an accident. The truth is, a majority of long-term disabilities are due to illnesses such as cancer and heart disease. A loss of income due to such a disability can be traumatic. Homes have been lost and bankruptcies have been declared. This is what disability insurance helps avoid.

Disability insurance replaces a portion of your income should you become disabled and cannot work. Plans offered by employers (group) typically replace up to 60% of an employees salary. According to industry lobbyist America’s Health Insurance Plans, half of mid- to large-sized firms offer benefits that last for at least five years. Even if you have employee coverage, it’s a good idea to consider supplementing it, as it would be difficult to live on just 60% of your salary. Supplemental plans (or individual) cover up to another 10-20% (70-80%) of your salary. No plan will cover 100% for fear you will have little incentive to return to work.

Which type of disability insurance is right for you? How much? Do you need supplemental? These are questions best discussed with a professional. Vantage offers disability insurance through The Family Security Plan.