A disability can create substantial economic hardship for individuals and their families. As a business owner, both your personal finances and your business could be at risk. If you were to lose the ability to earn income due to a disabling accident or illness, how would you pay your bills, send your kids to college, and save for retirement?
 

Tax-free income when you need it most

One way to help protect against the financial loss associated with a disability is to purchase disability income insurance. If you pay the premiums, an individual policy can provide you with a tax-free income stream while you are unable to work.

Weigh your options

When evaluating disability income insurance policies, it's helpful to consider the following.

  • Definition of disability. You can typically choose between "own occupation" coverage and "any occupation" coverage. With "any occupation" coverage, you can claim disability only if you are unable to perform any type of job. This type of coverage is generally less expensive than "own occupation" coverage.
  • Amount of monthly coverage. You can purchase disability insurance that will replace a certain percentage of your income — typcially between 50% and 70% of your pre-disability income. You should purchase coverage that will enable you to meet your monthly financial obligations.
  • Waiting period. The waiting period represents the amount of time that must pass between the date you become disabled and the date that disability income payments begin. The longer the waiting period, the less expensive coverage will be.
  • Benefit period. The benefit period can range from several months to life. The longer the benefit period, the higher the cost of insurance.

A disability income insurance policy could make the difference between financial security and financial hardship. Don't wait to consider this protection until it's too late.

 

This material was prepared by Broadridge Investor Communication Solutions, Inc., and does not necessarily represent the views of The Retirement Group or FSC Financial Corp. This information should not be construed as investment advice. Neither the named Representatives nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information or call 800-900-5867.

The Retirement Group is not affiliated with nor endorsed by fidelity.com, netbenefits.fidelity.com, hewitt.com, resources.hewitt.com, access.att.com, ING Retirement, AT&T, Qwest, Chevron, Hughes, Northrop Grumman, Raytheon, ExxonMobil, Glaxosmithkline, Merck, Pfizer, Verizon, Bank of America, Alcatel-Lucent or by your employer. We are an independent financial advisory group that specializes in transition planning and lump sum distribution. Please call our office at 800-900-5867 if you have additional questions or need help in the retirement planning process.

The Retirement Group is a Registered Investment Advisor not affiliated with FSC Securities and may be reached at www.theretirementgroup.com.

 

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Tags: Financial Planning, Lump Sum, Pension, Retirement Planning