How to Choose a Disability Insurance Plan

A disability insurance plan offers you a way to protect your income if you become disabled. When you are providing for yourself and your family, you need to make sure that your income is always going to be available, regardless of what happens to you. With so many disability insurance plans out there, it can be difficult for you to decide between them. Here are a few things to keep in mind when choosing a disability insurance plan.

Temporary or Permanent

One thing that you will want to look at is the length of time that you would receive benefits. With many forms of disability insurance, it is just a temporary solution. If the plan is just temporary, you probably do not need it. Most of the time, your employer is required to carry temporary disability insurance for you anyway. Make sure that the plan you are looking at provides for the long term.

Percentage of Income

Shopping for the cheapest policy is not always in your best interest. One of the most important things to compare is not how much it costs, but how much it will pay. A good plan will pay between 40 to 60 percent of your income. Since the benefits are tax-free, you won't notice much of a difference between that and your take home pay.