What are the income options when on disability?
There are three basic ways to replace income:
- You may have short term sick leave through your place of employment ~ or they may provide a group disability plan. You should check with your employers benefits coordinator.
- Social Security disability benefits can be paid to workers whose disability is expected to last at least twelve months and prevents them from being gainfully employed.
- An individual disability income insurance policy will replace between 50% and 70% of your income. Although less than your normal income, the benefits under this policy are not taxable as income.
What is the difference between Short Term and Long Term Disability Insurance Plans?
Short Term Disability Insurance (STD) will have a waiting period of 0 to 14 days and a maximum benefit period of two years.
Long Term Disability Insurance (LTD) can have a waiting period from several weeks to several months (often to coincide with the ending benefit of the short term disability policy) to a maximum benefit period ranging from a few years to your life time. By meeting with an advisor at Clark-Mortenson, we can help you best determine what your specific needs are.
How are disability premiums determined?
Disability premiums are determined based upon your age, sex, occupation, the percentage of potential income you are looking to insure, and the length of the waiting period and benefit period. Contact us to get specific pricing for your personal needs.