Disability Insurance – The Reality
A disability either which is degenerative or has occurred suddenly can have a devastating impact on you and your family. The steady income the family has enjoyed is now in disarray. Disability Insurance will enable you to live a less stress-free life and still allow you to pay for your expenses and keep the family home running.
A Disability Insurance benefit normally replaces up to 85% of your regular income. Based on plans selected, some plans are tax-free whilst others are taxable. You may receive Disability Benefits from 2-3 different providers but these plans are matched up to ensure that the benefits received are not more than your regular income. With Disability plans, there are two very important considerations. There are Benefits Periods (BP) and Elimination Periods (EP).
- Benefits Periods (BP) – This is the length of time the benefits will be payable for
- Elimination Periods (EP) – The length of time the individual has to wait before the benefits begin