Long Term Disability Insurance

Long–Term Disability insurance is one of the most important types of insurance to have as a working professional. No matter your specific occupation or income level, a long–term disability can create an immediate and irreparable financial disaster.

Long–Term Disability insurance can be obtained in two ways: through an employer sponsored group insurance plan and on an individual basis. In either circumstance, the intention of Long–Term Disability insurance is to provide income protection in case of a debilitating injury or illness occurring. If you are prevented from performing your job because of an injury or illness, Long–Term Disability insurance will provide a benefit once the elimination period is satisfied and may continue to pay benefits out to age 65.

A person’s greatest financial asset is his/her ability to go to work and earn an income. It is this ability to earn an income that allows for a person to purchase a home and car, pay for college tuition, and accumulate retirement assets. Without being able to earn an income, our lives are put on hold and our finances can easily fall apart. Long–Term Disability insurance is the best way to protect you and your family from experiencing the financial hardships that could result from a debilitating injury or illness.

Request a Quote

Importantance of Long Term Disability Insurance

To help put the need for Long–Term Disability insurance into perspective, consider the following examples:

A 30–year old professional earning $50,000 will earn $1,750,000 throughout a career that extends to age 65 assuming that he/she does not receive any increase in income. After taxes have been paid, assuming a 20% level tax bracket, this person would have earned somewhere near $1.4 million. This is the value of the risk a person runs in not having Long–Term Disability insurance. For someone who has Long–Term Disability insurance and opted to take the full benefit available for a $50,000 income (about $2,850/month tax–free), a claim beginning at age 30 and extending to age 65 would be worth approximately $1,197,000. Although it is not a 100% replacement of income, it is certainly much better than $0.

A 45–year old professional earning $100,000 will earn $2,000,000 throughout a career that extends to age 65 assuming that he/she does not receive any increase in income. Without going through the full diagnoses as above, most people would agree that $2 million is worth protecting and that a need for coverage does not necessarily go away with age.

Although the likeliness of these examples occurring may be slim, it is still a valid possibility. Since insurance is meant to protect against life’s uncertainties, we cannot simply make decisions on likeliness, but more so on the risk associated with not having protection.

To review your options pertaining to Long Term Disability insurance, call 1–800–817–4522 or request a Disability Insurance Quote today. Our firm strives to provide excellent customer service and advice relating to Disability insurance, so we are happy to address any questions or concerns you might have.

Request a Quote