Disability
For most working individuals, their ability to earn an income is their most valuable asset. Without an income…- How would you pay your bills?
- How would you maintain your lifestyle?
- What would happen to your retirement savings and other important financial goals?
Chances of a Disability
As you can see from this chart however the chances of suffering a disability are right around 45% for most working Americans. Furthermore, the average duration of a disability is not a permanent event. It typically lasts around 5 years.
So the question that needs to be asked is: how do you manage your life during that time period from when you are disabled to when you return to work? Group Long Term Disability Employer sponsored Group Long Term Disability (LTD) provides a good base for most individuals however there are several consideration for those planning to use it as there sole means of disability protection.- Caps on LTD Benefits may be too low for higher paid executives (Reverse Discrimination)
- Policy is not permanent – Benefits and premiums can be modified at renewal
- Policy is not portable
- Benefits typically offset with Social Security
- Group LTD Definitions are limited
- Preexisting Condition limitation
- Variable Compensation is not often times not covered
- Benefits can be taxable when received