For many Lockheed Martin employees, disability insurance may not be something that is given further consideration past the group policy. However, the longer you ignore it, the less protected you may be against long-term financial risks, due to unexpected illnesses and injuries. Read on to learn more about why you need this important benefit.
If you or others depend on your income, you probably need disability insurance. You cannot depend on social security disability benefits to replace your lost income as those can be difficult to qualify for and are not available if you are expected to be out of work for less than a year. One year without income could deplete your savings and have a negative impact on your finances and long-term plans.
Most long-term work absences are due to illnesses, not accidents. According to the Council for Disability Awareness, back injuries, cancer, heart disease, and other illness contribute to most long-term disability claims. The Council also tells us that short-term disabilities are mostly a result of an injury, pregnancy, or illness.
Fortunately, disability insurance helps you maintain a steady stream of income when you are out of work due to illness or injury. What’s more, it’s easier and less expensive to get disability insurance when you’re younger and healthy. Disability insurance is designed to replace a portion of your income when you can’t work. It can help to pay for essential expenses, including food, utilities, school tuition, mortgage, and car payments.
Ho much insurance you need will depend on your current income and living expenses. Most policies insure 60-80 percent of your after-tax income. After-tax income is used because the benefits you receive from a policy you purchase and for which you pay the premiums are non-taxable. Use this calculator to help determine what amount of disability insurance is most appropriate for your situation.
If you have additional questions or would like to receive a disability insurance quote, please let us know. Part of our comprehensive financial planning is to ensure our clients have their risks covered. We have Lockheed Martin specialists standing by and ready to assist. Give us a call today at 817-210-3444 or click HERE to book a complimentary consultation.
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Be sure and check back next week for more incredibly valuable information. Cheers!
Financial Planning and Investment Advisory offered by SWMG, LLC a Registered Investment Advisor.
This blog is being provided and sponsored by Strittmatter Wealth Management Group, LLC. Lockheed Martin and its subsidiaries do not endorse, recommend, or make representations with respect to any information, advice, services, or products discussed in this blog.
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