How Much Disability Insurance Do you Need? Grants Pass OR
Grants Pass, OR
Title: Investment Advisor
Company: Armstrong Wealth Management
Pension for Highly Compensated Owners,Stock Market Alternative,Alternative Investments,Life Insurance,Investment & Portfolio Management,Long-Term Health Care Planning,Annuity Ideas & Strategy Planning,Planning For Personal Finances & Budgeting,Retirement Income Accumulation Planning,Business Income Tax Planning,Wealth Engineering,IRA, 401k, Roth IRA, QDRO Rollovers,Wealth Management,Medicaid,Retirement Planning,Real Estate Investment Planning,Commission-Only Financial Planning (Full Disclosure),
La Pine, OR
Company: Fee-Only Financial Planner ("No Commissions")
Registered Investor: Yes
Oregon State University
Years Experience: 6
Wealth Engineering,Income for Life/ Preserve Principal,Medicare Planning,Investment & Portfolio Management,Investment Consulting & Allocation Design,Insurance & Risk Management Planning,Retirement Income Distribution Planning,Education Funding & Financial Aid Planning,Fee-Only Comprehensive Financial Planning,Portfolio Engineering,IRA, 401k, Roth IRA, QDRO Rollovers,Alternative Investments,Retirement Planning,Long-Term Health Care Planning,Business Succession & Liquidation Planning,Estate Tax Pl
Title: LPL Financial Advisor
Company: Meridian Financial Group
Investment Advisor Rep: Yes
401k Rollover From Employer,CD Alternative,Disability Insurance,Annuities,Long-Term Health Care Planning,Estate Tax Planning,Asset Protection Strategies & Planning,Stock Market Alternative,Alternative Investments,Life Insurance,Investment & Portfolio Management,Insurance & Risk Management Planning,Retirement Income Accumulation Planning,IRA, 401k, Roth IRA, QDRO Rollovers,Wealth Management,Health Care Insurance,Retirement Planning,Business Succession & Liquidation Planning,Retirement Income Dist
La Pine, OR
La Pine, OR
How Much Disability Insurance Do you Need?
How Much Disability Coverage do you Need?
Most disability insurance policies will limit the amount of benefit paid to you depending on the amount of other benefit's you receive. Often times, this will include benefit's that could be potentially paid through the government, such as a disability pension. However, you will have to remember in your decision about disability insurance , that any benefit from the government is not a sure thing. The only thing you will be sure of is the benefit that is coming from your disability insurance.
Usually, your disability insurance policy will specify a target amount that you will be able to receive from all insurance coverage combined. In general, you will not be able to receive more than this certain percentage of your current salary. In most jurisdictions, the maximum benefit will equal 70% of your current salary. Ideally, as much of that benefit as possible should be tax-free, in order to ensure that you are getting a net benefit which corresponds, as closely as possible, to your current take home pay. Planning in this way will give you much better financial footing if you ever do have to collect on this insurance.
In general, you should look at a combination of disability insurance policies (perhaps both through work and as an individual), which will give you at least 50% - 70% of your current wage. Otherwise, you may not have sufficient funds to cover your regular expenses. If you get at least 60% of your benefit's tax-free, that should bring you very close to your current take-home pay. However, if you can get 70% of your salary tax-free, this will definitely be preferred. You will have to take a look at what your current tax rate is and what you can afford to live on if you are incapacitated by illness or accident.
It does take some financial planning to decide the level of benefit's that will work for you. You also have to think carefully about whether an employer-paid plan is in your best interest. In fact, if you are thinking about negotiating to get disability insurance paid for by your employer, you should think again. It's generally better for you to negotiate a larger salary, and use the extra to pay for disability insurance yourself. This strategy will get you closer to your take-home pay in benefit's, if you ever do have to collect.
Disability Income Calculator
This disability income calculator is provided to you as a free service of Insurance Guide 101. It is intended to provide you with only an estimate. The calculation you make is not guaranteed to be accurate nor is it legally binding in any way. It will also rely entirely on the accuracy of information that you submit. It will only give you a rough idea of the disability income that you may receive.
The calculator is easy to use: simply plug in figures into each box, using the best, most accurate information available to you. Make certain to fill in all required fields. Once you have completed your calculation yo...