Disability Insurance (Living Benefits)

Long Term Disability (LTD) insurance is primarily intended to replace after tax income. Depending on your income, disability insurance will replace between 40-80% of your gross income (after expenses but before taxes). The amount that you qualify for in monthly benefit is based upon your income. The insurance companies have established protocols in order to determine the amount of benefit you qualify for, at a specific income. However, many individuals show as little income as possible in order to minimize taxes. This can have the affect of reducing the amount of long term disability insurance that you qualify for. Consider how your lifestyle would change if your income suddenly dropped by 40%! It is crucial that you maintain the maximum amount of personal, long term disability coverage available.

Additional types of “disability insurance” include:

1. Business overhead expense
2. Partner/shareholder buy-out
3. Key person
4. Accident only
5. Custom designed insurance products
6. Guaranteed standard issue programs

Disability insurance personal needs analysis calculator

Disability insurance Business overhead expense needs analysis calculator