What are the Costs of Disability Insurance? Washington DC
Title: President, Wealth Management Advisor
Company: KingdomTrust Capital Management, Inc.
Howard University, Bachelor of Arts
Regent School of Divinity, Candidate: M.DIV
Denver College of Financial Planning
Years Experience: 15
High Yield Bank Accounts,IRA, 401k, Roth IRA, QDRO Rollovers,CD 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,Fee-Only Comprehensive Financial Planning,401k Rollover From Employer,Income for Life/ Preserve Principal,Wealth Management,Health Care Insurance,Retirement Planning,Real Estate Investment Planning,Commi
Falls Church, VA
Company: ABP Insurance Agency, Inc
Washington State University - BA
Portland State University - MBA
Years Experience: 20
Life Insurance,Health Care Insurance,Long-Term Health Care Planning,Disability Insurance,Annuities
What are the Costs of Disability Insurance?
Disability Insurance Cost
Disability insurance can vary widely in cost, depending on the kind of benefit you are looking to receive. However, you can expect that any policy that gives you a reasonable benefit (50% to 70% of your salary) will also be reasonably expensive. Keep in mind that most financial planners state that you should have between 50% to 70% of your salary in disability benefit's in order to ensure that you can survive your health crisis financially. Also, keep in mind that ideally you will have paid the premiums yourself, so that the benefit you receive is tax-free. If your employer is paying for your long-term disability insurance , your benefit should be higher because you will pay income tax on it.
So, when thinking about premiums you do have to keep in mind what will happen when you are in the position to collect benefit's.
In general, premiums will be based on your age, sex, occupation and the amount of income you are trying to protect. If you have a low risk job, you can expect a lower premium. However, if you are trying to protect a large salary, your premiums can be quite expensive.
In general, the less likely that you will be hurt on the job, the lower your premium will be. So, if you wash windows on skyscrapers, your insurance is likely to be expensive. Most white-collar workers will get a break as a result. A computer programmer working in an office will likely have lower disability premiums than a construction worker, even if the ...