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Plan Ahead | Disability Insurance

Plan Ahead | Disability Insurance

July 20, 2023

Disability insurance is a type of insurance that provides income replacement if you become disabled and unable to work. It can be a valuable financial tool, as it can help you maintain your standard of living and pay your bills if you become disabled.

Protect Your Ability to Earn: Your most important asset isn't your home, car, or retirement savings; it's your ability to earn an income. As LPL Financial Advisors, we want to emphasize the importance of safeguarding this asset. Let's talk about why disability insurance is crucial:

  1. Income Protection: Disability insurance replaces some of your lost income, keeping you financially stable if you cannot work due to a disability.
  2. Medical Expenses Coverage: Disabilities often come with significant medical expenses. Disability insurance helps cover hospital bills, doctor's fees, and ongoing treatments, ensuring your health isn't compromised by financial burdens.
  3. Business Owners' Shield: If you're self-employed or own a small business, disability insurance becomes even more critical. It protects your income and safeguards your business during a disability.
  4. Long-Term Financial Security: A disability can have long-lasting financial consequences. Disability insurance ensures you can continue saving for retirement, investing in your children's education, and paying off debts.
  5. Peace of Mind: Knowing you have disability insurance provides peace of mind, reducing financial stress and allowing you to focus on your recovery.
  6. Customize for Your Needs: Disability insurance policies offer flexibility. You can tailor waiting periods, benefit durations, and coverage amounts to match your unique circumstances and preferences.

Our advisors can help you determine if disability insurance is right for you and recommend a policy that meets your needs. We can also help you compare different policies and find the best fit. We are here for you from the beginning, from the decision to purchase disability insurance to implementation.

These are our goals:

  • Help you assess your needs: Our advisors can help you assess your financial needs in case of a disability. We can help you determine how much income you would need to replace if you became disabled and what type of disability insurance policy would be best for you.
  • Help you compare policies: There are many different disability insurance policies available, and each one has its own set of features and benefits. Our advisors can help you compare different policies to find the one that best meets your needs.
  • Help you negotiate a reasonable price: Disability insurance premiums can vary depending on age, health, and occupation. The DFG financial advisors can help you negotiate a reasonable price on your policy so that you don't overpay.

Here are a few points to think about:

  • Start early: The younger you are when you purchase disability insurance, the lower your premiums will be.
  • Buy a long-term policy: A long-term policy will provide you with income replacement for a more extended time, such as 20 or 30 years.
  • Choose a policy with a high benefit amount: The higher the benefit amount, the more income you will receive if you become disabled.
  • Consider a policy with a residual benefit: A residual benefit will pay you a portion of your lost income even if you can work part-time.

Disability insurance can be a valuable financial tool, but choosing the right policy for your needs is vital. By speaking with a Dixon Financial Group, LLC LPL Financial Advisor, we will direct you to the best possible coverage.

David S. Dixon, CFP®

Jacob S. Bierstedt, CFP®, ChFC