Life is full of surprises – some beautiful, others challenging. At Weinstein Wealth Insurance Solutions, we’re committed to helping you navigate life’s uncertainties. One of the best tools for this? Disability insurance. Let’s delve into the ‘what’, ‘why’, and ‘how’ of this crucial coverage.
Disability insurance is designed to replace a portion of your income if an illness or injury prevents you from working. It’s a financial safety net, helping to safeguard you and your loved ones from financial hardship during a difficult time.
You might think, “I’m healthy and cautious, I won’t need disability insurance.” But life is unpredictable, and disabilities are more common than you might imagine. It could be a car accident, a sudden illness, or even a slip at home. In fact, studies show that a 20-year-old worker has a 1-in-4 chance of becoming disabled before reaching full retirement age. With disability insurance, you have the assurance that you’ll have income, even when the unexpected happens.
Two main types of disability insurance exist: short-term and long-term.
Short-term disability insurance typically covers you for a few months up to a year. It’s beneficial for temporary situations, like recovering from a surgery.
Long-term disability insurance, on the other hand, offers protection for more extended periods, often several years or until retirement. This type is ideal for chronic or severe conditions that impact your ability to work long-term.
The elimination period is the waiting time before your insurance benefits kick in. It’s often between 30-90 days.
Typically, disability insurance covers 60% to 70% of your pre-disability income.
If you pay your insurance premiums with after-tax dollars, your benefits are usually tax-free.
It depends on the specific condition and the insurance company’s policy.
Workers’ compensation only applies to injuries or illnesses that occur because of your job. Disability insurance covers disabilities regardless of whether they’re work-related.
Absolutely. There are disability insurance policies specifically designed for self-employed individuals.
Yes, many policies cover disabilities due to mental health conditions, though terms may vary.
Yes, and often it’s beneficial to have both for comprehensive coverage.
A rider is an optional add-on to your policy that provides additional benefits, often for an extra cost.
If you have individual disability insurance, it stays with you. Employer-sponsored plans usually don’t
The world of disability insurance can be complex, but you don’t have to navigate it alone. Bruce and Robyn Weinstein are here to help you understand your options and choose the coverage that best fits your needs. Reach out to Weinstein Wealth Insurance Solutions today to protect your income, your future, and those who depend on you. Your peace of mind is our priority.