Commentary: Questions and Answers on Disability Insurance | Business columnists

A: Disability income insurance provides a source of monthly income to replace what is lost if you are unable to work. This is important to help pay for your household expenses on an ongoing basis. Funds can also help you keep pace with saving for monumental goals in your life, like retirement or your child’s college education.

Question: Do I Really Need Disability Insurance? What about financial support from my profession or the Social Security disability program?

A: Employer-provided policies, if offered, often pay the equivalent of about half of your salary, but these benefits are generally subject to income tax, leaving you with a gap to fill. To attend to your needs. Social Security benefits aren’t always easy to claim, can take months before payments are approved, and often pay only a small amount (the average monthly benefit is $ 1,2341). Both of these options leave big gaps for most people.

Question: How much financial support could I receive from a disability income policy that I purchase?

A: Disability income insurance will generally pay about 60% of your income, depending on the structure of your policy. Premiums are paid in after-tax dollars, so benefits will not be taxable. After tax, the disability income benefit should be very close to your regular working income.

About Antoine L. Cassell

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