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.

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?

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.