How to Properly Purchase a Disability Insurance Policy

Disability insurance isn’t something that everybody thinks about, and if you’re employed with any company, chances are you don’t really need it. However, if you are your own boss, run your own company or simply do freelance work – even in addition to your regular work – you may need disability insurance. That way you’ll be covered if you get hurt on the job or in your personal life and aren’t able to perform. Otherwise you may not be able to make ends meet, and that can be disastrous for you and your family. Use these tips to help you pick the right type of disability insurance.

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  • Check the definition of the word disability in your policy before you buy. Some policies allow you to collect based on what you do and what you really earn. Others only allow you to collect based on your experience and education levels, even if that isn’t commensurate with what you actually make or what you need to live your current lifestyle.
  • Make sure you get a policy that replaces an appropriate amount of your earnings. Ideally, you want a policy that will pay out between 60% and 70% of your taxable earnings. That way you won’t have to alter your spending too much.
  • Look at your policy to see how long you’ll get benefits. You want benefits until at least retirement age.
  • Find out if your plan allows for a cost-of-living increase. If you have to stay on disability for a while or receive long-term benefits, you need to make sure you’re covered. Rent and everything from groceries to gasoline prices tend to go up over time. You need to be covered when your monthly costs rise.

Contact Schumacher Insurance Agency to learn more about how to purchase the right disability insurance plan.

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About Schumacher Insurance Agency

Why trust us? What do we do different than every other insurance agency? Consider this an invitation to get to know us. We believe we are an exceptional team of protection specialists that work hard to do things the right way, to educate our clients on insurance, and make the experience effortless. We are excited to introduce a new insurance experience for our customers. We encourage you to speak with our team who can show you how different we are… from text messaging services for late payments to educational insurance concepts on Facebook. We will prove our innovative approaches to obtain the proper coverage’s for you, your family, your business. Insurance is likely not the most interesting affair for everyone, but it is most certainly ours! Yes, we are insurance geeks!

Posted on July 20, 2015, in Agency, Uncategorized. Bookmark the permalink. Leave a comment.

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