Office: 206-652-4314

Email: info@truenorthwa.com

The trueNorth Advantage

Fee-Only
Comprehensive Financial Planning
Globally Diversified, Low Cost Portfolios

Disability Insurance

Disability Insurance Tips for High Income Earners

Published October 24, 2016

Disability insurance is very important during your working years to protect your income stream in the event you cannot work due to injury or illness.  The insurance is designed to replace a percentage of your earnings, not 100%.  The replacement percentage is typically between 60% - 66%, as the insurers want there to be some incentive for plan participants to return to work.  Benefits generally stop at retirement age (65), as they’re designed to replace earnings not retirement benefits.

Most disability insurance is provided by employers through group plans.  However, group plans typically have an income limit cap that may fall well below 60% of income for a high income earner.  In order to carry adequate insurance, a private policy can be purchased to cover the benefit gap and provide coverage up to 60%-66% of income.

It’s not enough just to buy a policy; It’s important to know that it will pay the benefits you expect when it’s needed the most. Each of these tips provides a vital piece of the disability insurance puzzle when you’re purchasing a disability policy.

Syndicate content

trueNorth Wealth Advisors is a registered trade name of trueNorth Financial Services, LLC, and is registered in Washington and New Hampshire. The Advisor may not transact business in states where it is not appropriately registered, excluded or exempted from registration.

Website Design For Financial Services Professionals | Copyright 2018 AdvisorWebsites.com. All rights reserved