A disability can create substantial economic hardship for individuals and their families. As a business owner, your personal finances and business could be at risk. How would you pay your bills, send your kids to college, and save for retirement if you were to lose the ability to earn an income due to a disabling accident or illness?
Tax-free income when you need it most
One way to help protect against the financial loss associated with a disability is to purchase disability income insurance. If you pay the premiums, an individual policy can provide you with a tax-free income stream while you are unable to work.
Weigh your options
When evaluating disability income insurance policies, it's helpful to consider the following.
- Definition of disability. You can typically choose between "own occupation" coverage and "any occupation" coverage. With "any occupation" coverage, you can claim disability only if you are unable to perform any type of job. This coverage is generally less expensive than "own occupation" coverage.
- Amount of monthly coverage. You can purchase disability insurance that will replace a certain percentage of your income — typically between 50% and 70% of your pre-disability income. You should purchase coverage that will enable you to meet your monthly financial obligations.
- Waiting period. The waiting period represents the time that must pass between the date you become disabled and the date that disability income payments begin. The longer the waiting period, the less expensive coverage will be.
- Benefit period. The benefit period can range from several months to life. The longer the benefit period, the higher the cost of insurance.
A disability income insurance policy could make the difference between financial security and financial hardship. Don't wait to consider this protection until it's too late.
IMPORTANT DISCLOSURES
Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual's personal circumstances.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
Securities and investment advisory services offered through qualified registered representatives of MML Investors Services, LLC. Member SIPC. Integrity Benefit Partners is not a subsidiary or affiliate of MML Investors Services, LLC, or its affiliated companies. 1 Marina Park Drive, 16th Floor Boston, MA (617) 585-4500. 617-585-4500. CRN202410-983967.