Learn how disability insurance works

Loss of Income Insurance Protection

Filed under: Disability Insurance — Alston @ 12:42 am September 13, 2011

Of all the types of insurance policies, few are as important as disability insurance. For most of us everything we purchase is paid for by our earned income. Losing our ability to earn an income therefore affects any person’s quality of life to say the least.

Business owners have special needs in regard to disability insurance. Disability insurance for self-employed persons must be purposely sought out by the business owner. It will not be part of a package offered by, and passively received from, his or her employer. All such financial arrangements must be made by the business owner himself or herself.

You can get quotes for a personal or business loss of income insurance policy on this site.

Disability insurance coverage provides protection against a loss of income caused by a covered sickness or injury. None of us know when we or if we are going to have a heart attack or a major accident. It is prudent to have good insurance protection for a loss of income.

Many policies allow the insured to receive as much as seventy percent of their previous income in benefits. Since disability income benefits can be received on a tax free basis, this seventy percent can be close to the insured’s previous post-tax income.

As a general rule if the premium payments for your policy are made with post-tax dollars, the payments you receive in benefits are not taxable. If your employer pays for your premiums, you may have to pay taxes on the benefits you receive when you file a claim.

You can impact the amount of your payments in several ways. The amount of the benefit you want paid to you, the length of time you want to be paid and the length of time (after the onset of your disability) you are will into wait until you receive you receive your first disability payment all have impact.

Your health also impacts your premium. Smoking or using tobacco also has an impact. Being a good risk means paying a lower premium.

You can request more information, including prices, from this website. Disability insurance or loss of income protection is very important unless you have enough savings and investments to maintain your lifestyle without earning a living.

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