A personally owned disability income insurance can be a saving grace during a period of an illness or injury that keeps you from performing in your regular job. At I & E Planning we help you navigate how long you could you go without your paycheck.  It can be difficult to set aside savings for a “rainy day”, so it is important to have a strategic plan in place.
All employers are different, but it is not surprising if your disability benefits at work are not enough to replace your take-home pay.  Many employers have only short-term benefits, which may not last long enough. If you change jobs you may not be able to take your benefits with you. These are important questions to ask, understand, and plan for.

Disability income insurance policies can also fund buy/sell agreements.  If you are in business with someone else, then you may need to consider disability income insurance. This will help secure and solidify future plans in case a need arises.

Social Security Disability Income (SSDI) may or may not be available because it uses a definition that includes language of “…inability to do any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.  To meet this definition, you must have a severe impairment(s) that makes you unable to do your past relevant work or any other substantial gainful work…”

According to https://www.ssa.gov/ most SSDI recipients receive between $800 and $1,800 per month (The average for 2020 is $1,258 per month).

I&E Discussion Points

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How long can you get by without your paycheck?  An elimination period is the length of time before your insurance starts paying you benefits. Think of it as a waiting period. For example, a common elimination period might be 90 days which would mean you’d need to make it through the first few months on your own before you would begin getting money from your policy. Your rainy-day fund may allow you to take a longer elimination period which would help to keep the cost of your policy lower. It is important to carefully consider the right balance between the lower policy premium and the length of the waiting period.

The benefit period is the duration of benefits once your claim starts. For example, a benefit period might be to age 65. If you were not able to go back to your regular job, then were would money come from? How long would you need to count on insurance benefits?

Not all policies are the same. Read carefully. If you become unable to perform the normal duties of your regular job, would your policy pay benefits OR would you be forced to work in a different job? Let us complete a policy review and validate the coverage you have today makes as much sense for you as the day you got it.

Illnesses or more commonly cited as the reason for a claim, than an injury.  https://disabilitycanhappen.org/disability-statistic/Musculoskeletal disorders (29%) Cancer (15%) Pregnancy (9.4%) Mental health issues including depression and anxiety (9.1%) Injuries such as fractures, sprains, and strains of muscles and ligaments (9%)