Who is the average person and how much of their compensation does average person want to protect? Long term disability insurance is paycheck insurance. First determine if your tax bracket warrants deducting the disability insurance premium as a legitimate business. If the answer is yes, apply for 80% of your compensation. Keep in mind that the benefits will be taxable as ordinary income. If the answer is no, apply for 60% of your compensation, your benefits will be tax free.
What’s the cost? What’s your gender, age, smoking status, health history, current medical condition? What’s the amount you want to cover? How long do you want coverage to last? What elimination period do you require based on your current cash reserves? It is possible that you may pay between 3-5% of the compensation you’re attempting to indemnify.
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What’s the cost? What’s your gender, age, smoking status, health history, current medical condition? What’s the amount you want to cover? How long do you want coverage to last? What elimination period do you require based on your current cash reserves? It is possible that you may pay between 3-5% of the compensation you’re attempting to indemnify.