1. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    Disability insurance benefits generate a stream of income during times of prolonged illness or injury recovery. Non deductible premiums also mean your benefits will be tax free. In general terms, you can cover around 60% of your compensation. Compare that to your cash reserves and the elimination or waiting period before benefits start. This will give you a good starting point to determine what you need or what you can afford.
    Answered on August 23, 2013
  2. 11783 POINTS
    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    How much disability insurance is needed? The answer is going to vary by individual. Some consider disability income sufficient if it replaces 70% of your taxable income, since often individual disability is tax free. You might need a greater amount if your insurance is taxable income. You also may need to look at inflation protection with your plan.

    But honestly, what ever you can afford and keep in-force is what you should consider as a minimum. Some income is better than no income and disability coverage should not be looked at as a all or nothing choice.
    Answered on October 15, 2015
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