How Much Disability Insurance Should I Buy?

Insurance companies will limit the amount of disability insurance you may purchase, and it is prudent to be covered up to that limit.

A Gap in Coverage

Many individuals have some disability income insurance through an employer-sponsored plan. There may be a gap, however, between the amount of insurance provided by that plan and the maximum amount of coverage allowed by an insurance company. Additionally, the employer-sponsored coverage may not be portable, leaving you uninsured when your employment terminates.

Purchasing an individual disability insurance policy can help fill that gap.

Bridging the Gap

The Best Option

Bultman Financial Services, Inc. recommends non-cancelable, guaranteed renewable as the best individual insurance available. This type of insurance offers you protection that cannot be cancelled by the insurance company and guarantees that premiums will remain the same until you turn 65, as long as premiums are paid on time.

This is a more expensive type of disability income insurance because it offers such a long-term guarantee. You should evaluate your current cash flow and projected long-term cash flow when deciding which type to buy.

Contact us to discuss your need for disability income insurance today!