INSURANCE

Q: A:What is disability insurance? What would you do if you were suddenly hit with a health issue or injury that left you unable to work for months? Do you have enough savings to cover your expenses if your paychecks suddenly stopped?

Not many people have the resources to manage an extended period of illness or injury. Even fewer are covered by their employers for a loss of wages. This is where disability insurance comes in. It provides payments directly to you that replace a portion of your income to help you pay your day-to-day expenses. It is not intended to cover medical bills or long-term care costs.

There are two main types of disability insurance — short-term and long-term coverage. Both replace a portion of your monthly base salary up to a cap amount. Some long-term policies pay for additional services, such as training to return to the workforce.

Before purchasing a disability policy, carefully review all its conditions. Ask the following questions: - How does the policy define ‘disabled?”

- What percentage of lost income will the plan cover?

- What is the waiting period before payments begin?

- How long will the payouts continue?

- Are there any exclusions?

- Are there any extra features, such as cost-of-living adjustments to protect against inflation? Disabilities can occur at any age. In fact, the Social Security Administration (SSA) reports that one in four of today’s 20-year-olds will become disabled for 90 days or more before they turn 67 years old. They also report that 68% of non-government workers have no disability insurance to cover them.

If you would like to learn more about disability insurance, please contact me at 440-255-5700. We can discuss your situation and needs. This is much too important to leave to chance.