One of the most important insurance policies you can purchase is Disability Insurance. It is the policy that will replace your income if you are unable to work due to an injury or illness. Most people have the option of adding disability coverage to their benefit package at work. People can usually purchase up to 60-65% of their income in disability coverage. We encourage our insureds to purchase the maximum benefit they can afford.
One of the most important considerations in the purchase of disability coverage is how to pay for it. If the premium is paid with pre-tax dollars the disability benefit can be taxed. If the insurance is paid for with after tax dollars then the disability benefit is paid out without any tax taken out. There is a significant difference in the net benefit received based on how the policy is paid.
It is very important that people who have disability coverage check the way they pay for the coverage. If there are any questions please call The Haas Agency.