How much disability insurance do you need?

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Ideally, if one can get covered for between 60 to 80 percent of current income minus taxes, the better.

Unlike life insurance, disability insurance is availed when the policyholder is still alive, but suffers injury and the loss of income that comes with it. This is supposed to cover income loss in the event of unexpected injury that resulted in incapacity for employment, and could last anywhere between a number of months to a lifetime.

Essentially, it is a precaution against an injury that may cause considerable or permanent disability. It allows principals and their dependents to regain part of the income. While most Americans have opted to ignore disability insurance due to the rather tricky cost-to-benefit analysis involved, most opinions on the matter, from that of Michele Lerner of Bankrate.com to the American Academy of Orthopaedic Surgeons, agree that disability insurance is nonetheless important. Disability insurance can get expensive, and finding the right rate and coverage for projected needs is an important part of getting the most from it.


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Gauging the extent of coverage is the hard part. For the employed, employers may offer some form of employee insurance covering the principal and dependents in the event of disabilities incurred on the job. However, government and work assistance are the common forms of employer-granted buffers, which are not always enough to sustain affected employees and their dependents during long-term injuries. Hence, after a survey of investments and possible income sources, it is wise to get quoted for disability insurance.

Currently the eDisability Quotes CEO, Ted Stearns has spent much of his career learning the ins and outs of financial services. Visit this website for more information on him and his company’s services.


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