Disability Insurance
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).
Required:
- 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
Gurinder Chahal Insurance Specialist provide specialized advice for Disability Insurance. Disability can occur suddenly but the insurance can be planned for your family to continue living in comfort.
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How Do You Determine How Much Disability Insurance You Require?
- Family – How many people depend on your income?
- Lifestyle – Will you be able to cut back?
- Flexibility – Would you be willing to change jobs/career?
- Debt – How long will your savings last?
- Finance Resources – Do you have savings/investments?
- Future Plans – What will happen if you are permanently disabled?
There are different type and sources of disability insurance which make it important to talk to an insurance professional who can advise on the coverage options that best meet an individual’s circumstances and requirement. How much disability insurance should you have? That depends on many things:
• Lifestyle: What does your current standard of living cost and how do you feel about having to cut back?
• Family responsibilities: How many people depend on your income? Are you a single parent or a non-custodial parent with financial responsibilities? Do you have parents or siblings who depend on your income?
• Employment flexibility: Would you be willing and able to change jobs?
• Debts: Who would make your mortgage and car loan payments, if your pay cheque stopped? How long would your savings last?
• Financial resources: How dependent are you on your pay cheque? Do you have savings, or investments that give you an income? How long would they realistically last?
• Dreams: What would happen to your future plans for your family, yourself or your retirement if your disability lasted long enough to wipe out your savings?