DISABILITY INCOME

 

Disability income (DI) insurance provides supplementary income in the event an illness or accident results in a disability that prevents the insured from working at their regular employment. Benefits are usually paid monthly so the insured can maintain a comparable standard of living and pay recurring expenses.


Understanding Disability-Income (DI) Insurance
​​​​​​​Disability income (DI) insurance is designed to replace 60% of the insured’s gross income on a tax-free basis. Some policies include bonuses and commissions as income. The benefits are tax-free because the policyholder used after-tax dollars to pay premiums. The policy pays a benefit in the event illness or injury prevents the policyholder from earning their usual income in their occupation. 


Although some employer-offered plans and Worker Compensation can provide help during a disability, the quality and scope of the coverage may leave the disabled employee short of the protection they require. Many employer-offered plans are part of a suite of coverage and may not pay to the levels an employee needs to meet their expenses. Also, Worker Compensation only covers injuries as a result of employment.

Your income is most likely your biggest asset. Without it, it would be hard to support yourself and your loved ones financially, as well as keep your future plans on track. Individual disability income insurance can help you stay on track by protecting your income.