Disability Facts That Might Surprise You
Tuesday, June 19, 2012 • 3:14pm
In times like these, good decisions matter. And when it comes to protecting a portion of your income from disability risks, it’s important to base your decision on the facts. In the case of disability, some of those facts might surprise you.
For example, more than one-quarter of today's 20 year-olds will become disabled before they retire. And if you are covered by a group disability income policy through your employer, you might not know about the likely gap between your policy’s benefits and your family’s actual needs.
To start with, the typical group plan only covers 50-70% of income. And benefits are often taxable, have maximum limits, and don’t cover bonuses, commissions or 401(k) contributions. In some cases, worker’s compensation helps bridge the gap, but less than 5% of disabling accidents and illnesses are work related.
If you run a business, your insurance protection should help cover its operating costs, possibly provide the funds for a partnership buyout, and protect a portion of lost earnings – either yours or your employees’.
The most common way to close the gap between existing coverage and actual needs is to obtain a supplemental individual disability income insurance policy. Because you own it, you can take it with you throughout your career.
And the best way to make a good decision about that policy is to work with a trusted, trained financial professional. No surprise there.
© 2011 Massachusetts Mutual Life Insurance Company 01111-0001
My name is Wellington Smith. I am from Summit, NJ and for the past year I have been a financial service professional with Emerald Financial: A member of MassMutual. Before building this career, I was a professional in another field. I played basketball for a living in Japan for 6 months. The time I spent there was short lived due to injury. I decided to start this career because I wanted the opportunity to fill in the gaps that people have in their financial world. I have experience working with blue and white collar individuals. My clients say that they enjoy the face to face contact and the personal attention that I give them. Moreover, I invite you to “position your family with a winning match” and allow myself along and MassMutual to help you get there. Contact me at wellingtonsmith@financialguide.com or call me at (908) 252 2370 or visit http://www.financialguide.com/G-Smith
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