If you are not able to work, how much money would you need per month?
What would your financial situation look like if you were seriously injured in a car accident? Alternatively, if the accident left one spouse deceased and the other seriously injured are you prepared financially?
It's not pleasant to think about accidents or sickness but you have to ask the question - if you are not able to work, how much money would you need per month?
People's greatest asset is their ability to earn income every year - so the question becomes, what is this asset worth?
To choose the exact amount of coverage you need to look at how much income your family would require to cover needs such as a mortgage, car payments and general living expenses.
Most group long-term disability coverage will replace 50 to 60 per cent of after-tax income if you are covered under an employer’s benefits plan
For most employed people that means there is very little need for additional disability insurance. However, professionals and upper management often find there are gaps.
The small business owners and entrepreneurs have a greater need for disability and illness insurance because they do not have any group coverage.
The challenge for them is the cost of insurance coverage. Inevitably, they look at the proposal and cringe, so they often delay and postpone the purchase of insurance protection. Many experts say that can be a mistake for you need to get disability insurance before you need it.
Every adult in a family should consider some level of critical illness insurance. When these kinds of situations hit, it gives a family some breathing room and the ability to focus on recovery. It also will help with the inevitable impact on the 'healthy” spouse's income as he/she helps to deal with the situation. You will not need to use your retirement funds and other assets to live and survive.
Glenn Stewart glenn@cuttherisk.com or 1-888-256-8685
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