CHICOPEE, Mass. (Mass Appeal) Would you and your family be OK if you didn’t collect a paycheck for months? Financial adviser Jamie Campbell walked us through Disability Insurance.
What is it?
Disability insurance- an income protection. When you are sick or hurt and out of work, how do you get a paycheck? This is the insurance that will provide that to you.
What if I have it through work?
Work only covers a certain percentage. Check what that is, but typically it is around 50 or 60% covered.
How much do I need?
As much as possible. The amount and length of coverage depends on what your job is. But if you are sick and out of work, most likely your expenses will go up. You will need an income to pay for your normal expenses, anything new that you come across from being sick or hurt, and hopefully continue to save. We don’t want to have to take from what we have already saved!
What am I actually protecting with this insurance?
All homeowners have homeowner insurance, everyone who has a car has auto insurance. But not everyone has disability insurance. Look at what your income can amount to (see graph below).
Our income over our lifetime is far more than a car or most homes cost.