Disability Insurance A person’s ability to earn money is likely the most significant asset they have. If unable to work, who would pay the bills? Living expenses often increase due to disability, while income is drastically reduced. Without proper protection, a sudden illness or injury for any period of time could devastate a family’s financial plans. The only way to protect yourself and your family from financial disaster is to maintain adequate Disability insurance. Employers can provide Disability protection as part of a group policy they offer to their employees. Disability coverage is also available for individuals. Coverage is available for Short-Term or Long-Term.
Life Insurance provides cash to your family after your death. This cash (known as the death benefit) replaces your income and can help your family meet many important financial needs like funeral costs, daily living expenses and college funding. What’s more is there is no federal income tax on life insurance benefits. The GNSA Insurance Partner Network can meet both Group and Individual Life insurance needs. Group life is typically employer paid but can come with shared premium responsibilities and the ability to purchase additional coverage without the need for complicated medical evaluation or testing. For individuals needing coverage of $100,000 or more, individual life insurance can provide excellent protection and be very cost effective.
Social Security includes a disability feature, but you’re considered disabled only if you can’t perform any work. You must wait for at least five months to initiate benefits and the amount you will receive will likely be less than half your income.
Disability insurance comes in two primary forms:
Long-term disability insurance generally kicks in after the first six months of disability and typically pays benefits until age 65. Employer-sponsored, long-term disability insurance may provide own-occupation coverage for a period of up to two years. At the end of that two-year period of time, or in most cases from day one of your disability, the disability insurance policy pays benefits only if you’re unable to do any meaningful work that you’re reasonably trained to do. Insurance that guarantees to pay if you’re unable to perform the duties of your occupation is substantially more expensive than a policy that guarantees to pay benefits if you’re unable to work at all.