Disability income insurance is a conversation.
2 Posts from Peter's LinkedIn this week for Disability Income Awareness Month 2022:
Disability income insurance is a conversation, not a line item in the financial planning process.
Example of how to start the convo with your clients:
“In the event of a disability, we need to make sure we still have an income to pay your bills and contribute to your financial goals. Through work, you have _________. Your financial plan relies on 80% of your income to pay bills, 20% to savings and retirement goals. We need to insure this income gap”
Benefits through work can be 20-50%+ on top of employee salaries depending on quality and quantity of benefits offered at the employer.
If you ever leave your place of work for another employer, your benefits may be less than or non existent at the new employer as compared to your current employer. You must take this into account when considering making a job or career change - even if you are young!
As it is Disability Income Awareness Month, here are some items to consider in regards to disability and your benefits:
1. Are you taking advantage of your group plan? Group rates are cheaper than individual - not every plan is auto enroll so double check!
2. Employee or employer paid premiums?
3. How long is the elimination period? When do you plan to retire? Any short term disability offered?
4. Do you have an emergency fund? HSA?
5. How long does coverage last? When do you plan to retire?
6. What are your monthly budget and retirement savings contributions?
7. What % of your income is covered by group plan ?
8. Is the group benefit amount sufficient?
9. Do you plan to ever leave your current employer?
10. Any exclusions on policy? Any health considerations?
If you ever plan on making a change to your work, make review the above and execute before leaving your current job. Last thing you want is to have a lapse of coverage!