DeNoble Financial Services

Disability Insurance

What is your most valuable asset? Some will say family and it is hard to determine their value. It is undoubtedly very high. In financial terms, it is your ability to earn an income. Without the income, the other assets like home, car etc. wouldn’t be there. Protecting income should therefore be a very high priority. Unfortunately, that isn’t the case for many Americans who find out too late that loss of income is something they can’t easily live with. Disability insurance policies are the least owned, but the most often needed during a person’s working lifetime. The chance of being disabled is 2-3 times as great as dying from age 21 to 67. Disabilities cause bankruptcies, loss of home and too often divorce. This is because most Americans are not prepared for a loss of income for more than a month or so, and can’t survive long on reduced income.

Ask yourself how long can you go with no income or partial income? Will your lifestyle change? What stresses on your family will occur? A disability is happening somewhere now. Some will know they are protected and some will start to worry.

Some reading this might have a plan through work. It is important to know what that plan covers. Is it short term disability or long term disability? What is elimination period? How much does it pay and how long? How do they determine total or partial disability? How do they determine your ability to go back to work-doing your current particular job or a "similar" job. Maybe you are a dentist or a plumber and love your work. Some policies will say you could teach those skills and it would be equal work. These are all things you need to know to be sure you are adequately covered for your individual situation.

Many reading this don’t have anything offered through work. There are many different plans available. Some focus on short term disabilities with payments that go for a year or two. Long term policies cover many years of disability or an entire working life to age somewhere between 65 and 70. One difference between policies is how they determine total and partial disabilities. You probably have your idea based on the words, but the insurance carriers have different definitions. It is important to remember the disability income is replacing income from your work, so their definition relates to your work. For some, it is your inability to work in your current work, or a percentage of it. If you are a carpenter and are right handed, but your left hand has been hurt to where you can’t work for months, you might think you can’t work at all because you really need both hands. Some insurers will agree, and some will say you are only partially disabled since you could still work, just not at your current job. For most people, having a policy that determines total disability the way you see it is very beneficial.

We work with several insurance companies that offer disability insurance plans. Your exact circumstance is unique to you and we work to put together a plan that addresses all your needs. They can be very affordable and when paid for after tax, provide tax free income when you need it most. No matter how much income you need to protect, within limits, we can cover, even up to $12,000 per month. Contact us to find out more about the plans offered.

DeNoble Financial Services                                           Covering the greater Houston area                                                                  281-638-4094