Disability Insurance
It can give you a tax-free monthly payment to help replace your income and cover your expenses if an illness or injury keeps you from working.
While a disability can often be visible to the naked eye, not all disabilities are so easily recognized. Chronic pain or a mental health issue can also qualify as a disability.
Protect your most valuable asset
Your ability to earn an income over a 30- or 40-year career, is your most valuable asset. Here’s an idea of what you could earn over the rest of your working life based on your age and current salary. This chart assumes a 2.5% raise every year and that you’re working to age 65.
Age 30 |
Age 40 |
Age 50 |
|
---|---|---|---|
$70,000 |
$3,844,975 |
$2,391,043 |
$1,255,235 |
$90,000 |
$4,943,539 |
$3,074,199 |
$1,613,873 |
$120,000 |
$6,591,385 |
$4,098,932 |
$2,151,831 |
$150,000 |
$8,239,231 |
$5,123,665 |
$2,689,789 |
$200,000 |
$10,985,641 |
$6,831,553 |
$3,586,385 |
$250,000 |
$13,732,051 |
$8,539,441 |
$4,482,981 |
How much income can you get?
The following chart shows the maximum amount you could receive tax-free each month if you faced a disability. These are just estimates – the amount you’d actually receive depends on specific circumstances, like your age and occupation.
Annual income | Maximum monthly benefit |
---|---|
$35,000 | $2,200 |
$50,000 | $2,975 |
$100,000
|
$5,200 |
$120,000 | $5,925 |
$140,000 | $6,625 |
$200,000 | $8,550 |
$300,000 | $11,350 |
$500,000 | $16,050 |
$1,000,000 | $25,000 |
Do you need disability insurance if you have it through your employer?
Group insurance is a great start, but it usually only provides basic coverage. A personal disability policy complements group insurance – together, they can help protect you, your family and your lifestyle should the worst happen.
Group coverage | Individual coverage | |
---|---|---|
How much coverage do I get? |
Coverage amounts are often limited |
You choose your coverage amount |
How flexible is it? |
Your employer often picks the coverage options |
You choose the coverage amount and how long you need it |
Can I change my coverage?
|
Typically, you can make changes once a year or if there’s a life-changing event |
Yes, you can adjust coverage |
What happens if I leave my employer? |
Your coverage ends unless there’s an option to convert to individual coverage |
Your coverage stays the same because it’s not tied to a job or membership |
How much does it cost? |
Typically, it’s low cost |
Typically, it’s a higher cost than group coverage |
Will the cost ever change? |
Costs can change every year |
Costs stay the same for the duration of your policy |