How would you pay your bills if you suddenly lost your ability to work due to illness or injury?

If you have group disability insurance through your employer, you may receive 45 to 60 percent of your salary for a limited time. Unfortunately, more than half of American workers don’t have disability insurance, and those who are covered probably won’t receive enough to cover their bills. The average disability lasts 2.5 years.

Most people insure their homes, their cars and their lives. But they balk at disability insurance because they think it’s not necessary. Think again. The Social Security Administration estimates that one in three Americans will suffer a disability before they retire.

Don’t count on Workers’ Compensation or the Social Security disability benefit. Most disabilities occur off-the-clock and are not covered by Workers’ Compensation. Social Security requirements are stringent, and most recipients receive just over $1,100 a month.

Group disability insurance is a good starting point. Review your policy and figure out how much it will provide, and for how long. Ask your employer if you can pay for additional coverage.

If you don’t have disability insurance, or if it provides inadequate coverage, consider purchasing an individual disability policy. Premiums are fairly inexpensive, and are based on your age, income, type of work, benefit amount, and the terms you choose.

When you combine the benefits you receive from your group and individual policies, you may receive up to 70 percent of your income. Keep in mind that no insurance companies offer 100 percent coverage. That would remove the incentive to work!

One of the advantages of an individual policy is that the benefits are not taxable, while the benefits from a group policy are taxed.

Contact the financial experts at Dreggors, Rigsby & Teal for a free consultation at (386) 734-9441 or info@drtfa.com.  We’ll review your financial situation and recommend the best options for disability insurance.