Disability insurance is designed to help maintain your standard of living while you are out of work. It is the oldest form of health insurance, providing coverage when you are unable to work due to accident or long illnesses. Statistically, there is a 30% chance of someone needing disability insurance before the age of 60.
Disability insurance replaces up to 60% of your income if you are out of work for the above reasons. You can use funds to pay your mortgage, rent, monthly bills, medical bills, whatever you need to pay. Disability insurance is non-taxable. You will not pay any income tax on any disability insurance you receive. It is also inexpensive, making it easy to maintain a policy so that you are covered in case anything happens to you.
Life insurance is designed to replace your income in the event of your death, therefore helping maintain your family’s standard of living. It also allows you to keep the financial promises you made during your lifetime if you die before those promises are fully paid. Life insurance protects your assets and the assets of your loved ones. Your death benefit payout is non-taxable, so your family will not have to pay taxes on your death benefits.
Life insurance can also be accessed during your lifetime in certain circumstances, such as when you are suffering from a chronic or terminal illness. Some plans accrue cash value which can be accessed during the life of the policy for any reason. It can also be used as a supplemental form of retirement income, depending on type of life insurance you purchase. Life insurance is also very affordable; the earlier you buy life insurance the more reasonably you can acquire it.
Post by: Lori S
No comments:
Post a Comment