While people commonly purchase life insurance either through the group benefit sector or the individual marketplace, they are less likely to buy disability insurance. This can be a critical mistake. The risks of an extended disability are much higher than that of an unexpected death for the average worker.  According to a report by Cornell University, 15,533,000 American workers aged 21-64 reported a work limitation in 2013. Many never regained their ability to work full-time and must deal with the economic repercussions for the rest of their lives. Group disability is an excellent benefit, but, like all insurance products, should be carefully researched before purchase. For instance, many people don’t realize that their disability benefits are taxable if their group disability is paid by their employer. This can drastically reduce an income check that already has been cut by 40% or more by the COBRA payments necessary to continue basic health coverage. Combining group disability with a private disability plan will increase the amount of after tax benefits available to you should you become incapacitated in a way that would prevent you from earning a wage. Just like with many forms of insurance you may think. “Why should I pay for something I may never use?”  Well, the moment you become disabled you will look like the smartest person alive because you had the foresight to put some protection in place for you and your family. If you don’t have disability insurance available to you in the group setting, you need to at least look into a private plan.  Disability insurance will cost you less than you may think and, if you have paid your own premiums, the income you receive from a payout of benefits is not taxable. Please, for your family’s sake, take a moment and think about how all you obligations would be met if you were unable to work, and consider private disability insurance. If you… | Read More »