Disability Income Insurance Protection, Part II

Disability income insurance helps to replace a portion of lost earnings and could possibly protect your ability to contribution to your retirement fund due to sickness or injury.

There are alternatives to buying disability income insurance, but they are not exceptionally attractive. One could rely on Social Security, yet qualifying is challenging and the amount of benefits depends upon contribution status, income and age, as well as many other variables. In essence, it is not a stable amount that can be relied upon. One might also try to rely on a company paid long-term disability (LTD) insurance, though it is best to run over these policies with a fine tooth comb. Most of these employer paid benefits only cover between thirty to fifty percent of annual earning, without bonuses and retirement contributions.

Other alternatives include using your savings account or borrowing money. Both of these options are very unstable. The savings account can be drained quickly, and how much can one continue to borrow if they are not meeting their own living expenses? Considering these alternatives, you may choose to opt for purchasing disability income insurance.






For information on Social Security Disability, visit the

Social Security Disability SSI Resource Center















Additional Resources

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