What is the benefit?
If you have a long term disability benefit available from your employer, congratulations! Do you know the percentage of income covered, 50% or 60%? Is there a maximum benefit that will be paid, is it $5,000 – $7,500 or some other number? Every group plan varies, it is best to know the details before you need to learn the benefit through experience.
Now you have to take a few minutes and determine, is the amount available to me, after taxes, enough to meet my monthly needs of our home? If the answer is no, additional benefit or other options will need to be considered.
- Could you live with a 50% pay cut? – Use this flyer to address the concerns above. You can also add your contact information before printing.
What is covered?
Many people today are compensated for performance and profitability of their position or team. Often a person will have a base salary and be paid an incentive through bonus or commissions. Be aware and review the plan description to determine if your “total income” is protected or “salary only” when calculating a disability benefit?
- Questions to Ask About Your Group LTD Coverage – Give this to a client to use with their human resources department to discover the details of their coverage.
Is it enough?
You have a number in your mind and likely know each month, how much it takes for your home to function. If not, utilize the worksheets below to quickly determine the monthly inflow of income required to maintain your financial quality of life.
- Individual Disability Income Insurance Worksheet – Fill out this worksheet with your client to determine their need.