Disability Insurance FAQ

Q: Disability Insurance - Who Needs It?

A: Determining whether you need disability insurance is a personal choice. You must decide how much financial risk you are willing to assume should you suddenly find yourself unable to work for an extended period.

• How many months can you rely on your savings?
• How easy will it be for you to rebuild your retirement nest egg?
• Can your spouse's income cover the lost salary?

Your income level helps determine your need. In general, people who make less than $30,000 or $40,000 a year don't need it. Some insurance companies won't offer coverage for people with incomes below $20,000. Note that some insurance companies won't cover workers in certain dangerous professions no matter how high their income, such as pilots, miners, and police officers.

Disability insurance is not typically used for short-term injury or illness. If you rupture a disk in your back and are out of work for two months, it's not wise to draw on disability, as future premiums may skyrocket. Instead, experts advise using your savings to live on for a couple months to cover a short-term illness and in some cases; your employer might pay sick-leave benefits.

It’s best to consult your Gateway Insurance agent for help determining if disability coverage is right for you.

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Q: What Disability Insurance Products Are Available?

A: Disability Insurance Products:

• Long Term Disability covers you until age 65. This is what most people think of when they think of disability insurance. It is the most important type of disability insurance. No one should be without it.
• Short Term Disability covers you for up to a year. It is great for accidents and maternity. Accident coverage is also included and can even be bought separately.

Contact your Gateway Insurance agent to find out how much disability insurance is right for you.

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