Is Long Term Disability the Best Option for Me?

Always protect your most valuable assets. These include our homes, our cars, and most importantly our Human Life Value - the ability to earn an income. A Long Term Disability plan establishes financial security and protects against losses in the instance of an injury or illness, that prohibit an individual from working.

Our most valuable asset: financial security

Picture this. You are currently 40 years old and are earning $100,000 annually. If we calculate your gross earnings for the next 15 years, the total sum would equate to $2.5 million. At the age of 65, your assets will have grown substantially. The are huge risks associated with this $2.5 million asset. What can you do to protect this?

Long Term Disability: is right for you?

Let’s use two different scenarios to explain the benefits of a Long Term Disability plan. Let’s say Job A and Job B are both the same, each earning $100,000 per year. However, Job A does not have a Long Term Disability plan. Let’s say this person got injured severely and are now unable to work. Since they did not have a Long Term Disability plan, their source of income would be reduced to nothing, while they were away from work. 

Let’s say Person B is on a Long Term Disability plan. Since they’re on the plan, their annual earnings would be reduced to $97,000. However, if this person were to be injured or succumbed to any illnesses, they would be protected by their plan. As a result, they would continue to receive a monthly income, around $5,000. Once that individual returned to work, they would receive 50% of the income that was set aside while they were gone.

While most people may choose a Long Term Disability plan, others might fancy the option of being self-insured.

A Long Term Disability insures your most valuable asset and is a smart and safe way to create financial security. Would you buy a house without home insurance? Or drive a car without auto insurance? Probably not! So why wouldn’t you do the same for your most important asset?

Need help making the right decision? Let us help!

Make smart decisions today! Talk to your Financial Advisor to discuss whether or not Long Term Disability is a probable choice for you. If you have any questions, get in touch with us! Contact Taayla today to learn about a Long Term Disability plan. Subscribe to our YouTube channel! We post new video content once a month, so don’t miss an episode and get my financial tips and tricks sent straight to your inbox.