The financial consequences of a lengthy disability could literally cost millions. A 40-year-old worker who makes $75,000 a year and suffers a permanent disability could lose over $2 million in future earnings. People don't hesitate to insure their homes, cars or other valuable possessions, so why not insure something that is much more valuable than all those things?
Benefits of Disability Insurance:
- Disability insurance is designed to pay monetary benefits when an illness or injury prevents the insured from earning income. In this respect, it is an income replacement policy, which pays money when a disability arises from a cause recognized by the policy.
- Monthly Income Benefits are paid out income-tax free.
- A personal disability income policy is portable allowing the insured to keep it if they change jobs, as opposed to Group Long Term Disability.
Disability Gap Analysis
This analysis reflects the cash flow gap created by a disability event as well as the potential insurance solution to cover all or part of that gap.
Disability Wealth Effect
The true cost of a disability is not limited to the lost income from being unable to work or any extra medical costs. There is also an opportunity cost resulting from not being able to invest and grow any of that money. This report looks at the overall wealth that could be lost due to a disability event.
Contact us to discus your specific situation and determine whether disability insurance make sense for you.
This is a hypothetical example and is not representative of any specific investment. Your results may vary.