Six Things You Need To Know About Protecting Your Paycheck

While most of us understand the need for our cars and homes, many do not consider the insurance that pays for those things ... our paychecks. It is crucial to understand the importance of properly insure your paycheck with disability insurance. Here are the answers six of the most pressing issues of people and disability insurance:

1. Where does the disability insurance shaped my financial plan?

Disability insurance is there to protect your income if you become sick or injured and unable to work. In essence, it protects your paycheck. Your financial plan must start and end with the income planning. Unless you first protect your income, there is no financial plan!

2. What about disability insurance through my work-isn't that enough?

who called disability insurance group. With this particular coverage, you are just a tenant. You are not in control because you do not have politics. It can be taken from you in an instant; your employer may waive or insurer may decide to stop the insurance group. You are their thank you.

In addition, 70% of employers do not offer insurance long term disability in the workplace, which means that if you have coverage, there is probably a short-term disability, it that would not help you meet your financial obligations if you were sick or injured for a long period of time.

Also, keep in mind that long-term disability group generally only covers your base salary, so bonuses, commissions, incentives, deferred compensation, the options purchase of shares and pension contributions are generally not covered. In most disaster scenarios, people are very disappointed with the adequacy of their group disability coverage.

3. How long-term care insurance differs disability insurance?

Simple. Disability insurance pays you and long-term care insurance generally pays someone else who provides care service.

4. How Disability Insurance differ from life insurance?

Regarding the replacement of the income and preservation of assets, there is no difference. The difference between the disability insurance and life insurance is that you are above or below six feet of earth. The main concept is to think that the chances of becoming disabled are much more than dying prematurely.

5. How much disability insurance should I have?

must have as much disability as possible. No less than 65% of your gross income is considered adequate. I have not met anyone who receives disability benefits who said that their advantage is more than enough. Unfortunately, when you are disabled, the truth is always the opposite; there is never enough money. That is why the additional disability insurance is often required to adequately protect the income of a person. You can get a working idea of ​​how much you might need here.

6. Where can I get disability insurance?

A good counselor or financial insurance agent will always offer disability insurance, which should be a clue when choosing an advisor. If you do not have an agent or adviser, you can start your search here.