How $150/Month Saved My $150,000/Year Income: My LTD Story

Long-Term Disability Insurance (LTD)

The Insurance That Protects Your Entire Career

My friend, a 34-year-old architect, was diagnosed with multiple sclerosis. He could no longer work the long hours his job demanded. His paychecks stopped, and he faced the terrifying prospect of decades without an income. But years earlier, he had bought a long-term disability policy. Now, that policy pays him over $6,000 a month, tax-free. It allows him to pay his mortgage and support his family. LTD isn’t for a broken leg; it’s for a catastrophic illness or injury that could permanently derail your career. It protects not just your next paycheck, but all your future paychecks.

How $150/Month Saved My $150,000/Year Income: My LTD Story

The Best Financial Decision I Ever Made

As a young lawyer making good money, I felt invincible. My advisor insisted I get a personal long-term disability policy. It cost me about $150 a month to protect 60% of my $150,000 income. I thought it was a waste. Two years later, a car accident left me with a traumatic brain injury that made it impossible to practice law. Now, that policy pays me over $7,000 a month. It has allowed me to focus on my recovery without financial ruin. That $150 monthly premium preserved my entire financial future.

Could You Survive Years Without a Paycheck? The LTD Lifeline

The Risk That’s Greater Than Dying

For a 30-year-old, the statistical probability of suffering a long-term disability before retirement is far greater than the probability of dying. My colleague found this out the hard way after a cancer diagnosis. She couldn’t work for over two years. How do you pay your bills for years without an income? Her long-term disability insurance was the answer. After a 90-day waiting period, her policy began paying her 60% of her salary every month. It was the financial lifeline that allowed her to keep her home and focus on her fight.

Long-Term Disability: The Most Important Insurance You Probably Don’t Have

Protecting Your Most Valuable Asset

What is your most valuable financial asset? It’s not your car or even your house. It’s your ability to get up every day and earn an income for the next 30 or 40 years. For a 30-year-old earning $80,000 a year, that’s over $3 million in future earnings. A long-term disability policy is the only insurance specifically designed to protect that asset. Yet, it’s the one piece of the puzzle most young professionals ignore. It’s the most important insurance you can buy, precisely because it protects the source of everything else.

Own-Occupation vs. Any-Occupation: The LTD Clause That Changes Everything

The Most Important Definition in Your Financial Life

This is the critical difference in LTD policies. My uncle, a surgeon, injured his hand and could no longer operate. His “own-occupation” policy paid his full benefit because he couldn’t do his specific job, even though he could still teach. A lesser “any-occupation” policy might have denied his claim, arguing he could still earn a living as a teacher. “Own-occupation” protects your ability to work in your specialized field. It’s the gold standard and the single most important feature to look for in a quality long-term disability policy.

Why Your Employer’s Group LTD Plan Might Be a Financial Trap

The Illusion of “Good Enough” Coverage

My company provides “free” long-term disability insurance. It sounds great, but it’s a trap. First, the benefit is taxable, meaning my payout would be much lower than I expect. Second, the definition of disability changes from “own-occupation” to the much stricter “any-occupation” after just 24 months. Third, if I leave my job, the coverage is gone. Relying solely on a group LTD plan gives you a false sense of security. It’s a good base, but a private, portable “own-occupation” policy is the only way to be truly protected.

Decoding LTD Benefits: How Much You Get Paid (And For How Long)

Understanding Your Paycheck Replacement

When you buy an LTD policy, you’ll choose two key things. The Benefit Amount is the monthly, tax-free check you’ll receive, typically around 60% of your gross income. For a software developer earning $120,000 a year, this might be a $6,000 monthly benefit. The Benefit Period is how long the payments will last. This could be for a set number of years, like five or ten, or, in the best policies, it will pay all the way until you reach retirement age, typically 65 or 67.

The Shocking Statistics: Your Chances of Needing LTD Are Higher Than You Think

It’s Not a Matter of “If,” But “When” for Many

It’s easy to think a long-term disability will never happen to you. But the statistics from the Social Security Administration are sobering: just over 1 in 4 of today’s 20-year-olds will become disabled for some period before reaching age 67. And the vast majority of disabilities are caused not by freak accidents, but by common illnesses like cancer, heart disease, arthritis, and mental health disorders. The risk is real, and it is significant. Long-term disability insurance is a plan for a probable, not just a possible, event.

LTD Elimination Periods: Surviving the Wait Before Benefits Kick In

The 90-Day Deductible

An LTD policy doesn’t start paying you the day you get sick. It has an “elimination period,” which is a waiting period you must satisfy first. The most common elimination period is 90 days. This means you have to be disabled and out of work for three full months before your first benefit check is cut. This is why having an emergency fund with at least 3-6 months of living expenses is so critical. Your savings are the bridge that gets you through the LTD waiting period.

Is Long-Term Disability Insurance Really Expensive? Let’s Break It Down.

A Small Percentage to Protect 100% of Your Income

People often assume LTD insurance is unaffordable. The general rule of thumb is that a good, individual “own-occupation” policy will cost between 1% and 3% of your annual income. So, if you earn $100,000 a year, you can expect to pay between $1,000 and $3,000 a year, or roughly $80 to $250 a month. While not cheap, consider what you’re protecting: your entire $100,000 annual income, year after year. Paying a small percentage to protect your most valuable asset is a wise investment.

Getting Individual LTD When Your Employer Offers a Group Plan (And Why You Should)

The “Wrap-Around” Strategy for True Protection

My friend has a group LTD plan at work that covers 60% of her salary, but it’s taxable and has a weak definition of disability. To fix this, she bought a smaller, private individual LTD policy. Her private policy is designed to “wrap around” her group plan. It provides an extra layer of tax-free benefits and, most importantly, has a true “own-occupation” definition of disability that will protect her in her specialized career. This combination gives her the best of both worlds: some free coverage from work and a portable, high-quality policy she controls.

Protecting Your HIGH Income: LTD Strategies for Doctors, Lawyers, Execs

Specialty-Specific Own-Occupation is a Must

For a high-earning professional like a surgeon or a corporate attorney, their income is tied to their ability to perform very specific tasks. A standard “own-occupation” policy might not be enough. They need a policy with a “specialty-specific” definition of disability. This means if a surgeon injures their hand and can no longer operate, they are considered totally disabled, even if they could still work as a general practitioner or a consultant. For high-income specialists, this specific, robust definition is the most critical feature of an LTD policy.

Can You Get LTD Insurance with Pre-Existing Conditions? It’s Tough.

Your Health History is Under Scrutiny

Getting an individual long-term disability policy requires full medical underwriting. If you have a significant pre-existing condition, it can be challenging. For example, if you have a history of back problems, the insurance company might offer you a policy but with an “exclusion rider,” meaning they will not pay for any disability related to your back. For more serious conditions, they may decline your application altogether. This is why the best time to buy LTD insurance is when you are young and healthy, before any health issues arise.

LTD Riders You NEED: Cost of Living Adjustment (COLA), Partial Disability

The Upgrades That Make a Good Policy Great

A basic LTD policy is good, but a couple of riders make it great. A Cost of Living Adjustment (COLA) rider will increase your monthly benefit by a certain percentage each year you are on claim, helping your income keep pace with inflation. A Residual or Partial Disability rider is also crucial. It will pay you a partial benefit if you can work part-time but can’t return to your full duties. Without this, you might be forced to choose between receiving no benefit or not working at all. These riders provide essential real-world flexibility.

Filing an LTD Claim: Navigating the Complex Process

A Marathon, Not a Sprint

Filing an LTD claim is a serious process. My aunt went through it. It started with submitting a mountain of paperwork, including a detailed statement from her and a comprehensive report from her doctor. The insurance company then reviewed her medical records and even had an independent doctor review her case. The process took months. The key takeaway was to be incredibly organized, keep copies of everything, and have a doctor who is supportive and willing to provide detailed documentation about your condition and its limitations.

What Happens If Your LTD Claim is Denied? Don’t Give Up!

The Appeals Process is Your Right

It is not uncommon for an initial LTD claim to be denied. Insurance companies are businesses, and they will scrutinize every claim. If you get a denial letter, it’s not the end of the road. You have the right to appeal. The first step is an internal appeal, where you submit more evidence and a rebuttal to the insurer. If that fails, you may need to hire an attorney who specializes in disability insurance appeals. Many valid claims are eventually approved on appeal, so it is crucial to be persistent.

Is Long-Term Disability Income Taxable? It Depends!

The Simple Rule: Who Paid the Premium?

The taxability of your LTD benefits follows a simple rule. If your employer paid the premium for your policy (which is the case for most group plans), then the income benefit you receive is taxable as ordinary income. If you paid the premium for your policy yourself with after-tax dollars (as with an individual policy), then the benefit you receive is completely tax-free. This is a massive advantage for individual policies, as a $6,000 tax-free benefit is worth much more than a $6,000 taxable benefit.

LTD Benefits vs. Social Security Disability Insurance (SSDI): Key Differences

Don’t Rely on the Government’s Safety Net

Social Security does have a disability program (SSDI), but it is very difficult to qualify for. The definition of disability is extremely strict: you must be unable to perform any substantial gainful activity, not just your own job. The majority of initial applications are denied. The benefit amount is also often much lower than a private LTD policy would provide. A private LTD policy is a much more reliable and robust form of income protection. In fact, most LTD policies will require you to apply for SSDI and will then subtract your SSDI benefit from their payment.

How Long Does LTD Pay? (Benefit Periods: 5 Years, 10 Years, To Age 65/67)

Choosing the Duration of Your Safety Net

When you buy an LTD policy, you’ll select a “benefit period.” This is the maximum length of time the policy will pay out for a single claim. Some less expensive policies might have a benefit period of only five or ten years. However, the best and most comprehensive policies offer a benefit period that lasts until you reach retirement age, typically 65 or 67. If you suffer a career-ending disability at age 35, a “to age 67” benefit period is the only way to ensure your income is protected for your entire working life.

Mental Health and LTD Claims: Challenges and Coverage

An Increasingly Common, But Scrutinized, Claim

Most modern LTD policies do cover disabilities resulting from mental health conditions like major depression or severe anxiety. However, these claims are often heavily scrutinized by insurance companies because they are based on subjective symptoms rather than objective medical tests like an X-ray. Additionally, many group LTD plans have a limitation that will only pay benefits for mental health claims for a maximum of 24 months. Individual policies often provide more comprehensive and longer-lasting coverage for mental health disabilities.

LTD for the Self-Employed: Protecting Your Business and Income

If You’re the Engine, You Better Insure It

As a self-employed graphic designer, my income depends 100% on my ability to work. I don’t have an employer to provide a safety net. That’s why one of my first business investments was a personal long-term disability policy. It ensures that if I become sick or injured and can’t design for a year, my personal income is replaced, and I won’t lose my house. I also have a “Business Overhead Expense” policy that would pay my business’s rent and software subscriptions while I’m disabled, ensuring my business survives until I can return.

Understanding Residual or Partial Disability Benefits in LTD

Getting Paid Even if You Can Work a Little

A “residual disability” rider is a crucial feature. Imagine you have a back injury that prevents you from working your 40-hour week, but you are able to work 20 hours a week. Without this rider, you might not qualify for any benefits because you are not “totally disabled.” With the rider, if you suffer an income loss of, say, 50% due to your condition, the policy will pay you 50% of your total disability benefit. It provides a partial benefit for a partial disability, which is how many long-term recoveries actually work.

The Definition of Disability: Why “Own-Occupation” is King

The Difference Between Financial Security and Financial Ruin

The definition of disability is the heart of your LTD policy. A weak “any-occupation” definition means the insurer can stop paying you if they think you could work as a greeter at Walmart. A strong “true own-occupation” definition means the insurer will continue to pay your full benefit if you are unable to do the duties of your specific profession, even if you choose to go work in a different field. For a skilled professional, this is the only definition that provides real protection for their high earning potential. It is worth every extra penny.

How Much LTD Coverage Do You Actually Need? (Income Replacement Goals)

Aim to Cover Your Take-Home Pay

Most LTD policies will allow you to insure up to about 60-70% of your gross income. This might not sound like enough, but it’s important to remember that if you have an individual policy, this benefit is received tax-free. Your goal should be to buy enough coverage so that your tax-free disability benefit is roughly equal to your current after-tax take-home pay. This will allow you to maintain your current standard of living, pay your bills, and continue saving for your goals, even while you are unable to work.

Integrating LTD with Retirement Savings Protection Riders

Keep Your 401(k) Growing, Even on Disability

A devastating, but often overlooked, consequence of a long-term disability is that your retirement savings come to a screeching halt. To solve this, some individual LTD policies offer a “retirement protection” rider. In addition to paying your monthly disability benefit, this rider will also contribute an amount directly into a trust on your behalf each month. This money is then invested for your retirement. It ensures that a long-term disability doesn’t just derail your current income, but also your future retirement security.

Why Waiting Until Your 40s or 50s to Buy LTD is a Costly Mistake

Lock in Your Health and Your Low Rate When You’re Young

The best time to buy long-term disability insurance is in your late 20s or early 30s. There are two main reasons. First, you are likely at your peak health, which means you can easily qualify for the best rates and have no exclusions. Second, you can lock in that low premium for your entire career. If you wait until you are 45, not only will the base rates be higher due to your age, but you are far more likely to have developed a health condition that could make your policy even more expensive or could even make you uninsurable.

Comparing LTD Quotes: What to Look For Beyond the Premium

A Checklist for a Quality Policy

When you compare LTD quotes, the monthly premium is just the starting point. You need to compare the critical features of the contract. Does it have a true “own-occupation” definition of disability? What is the benefit period (ideally, to age 65 or 67)? Does it include a residual/partial disability benefit? Does it have a cost-of-living adjustment (COLA) rider? A policy that is $20 a month cheaper but has a weak definition of disability is not a good deal. You must compare the quality of the protection, not just the price.

Does LTD Cover Burnout? It’s Complicated.

A Difficult Claim to Prove

“Burnout” itself is not typically a covered condition under an LTD policy. However, burnout often leads to diagnosable medical conditions, such as severe depression, anxiety, or stress-related cardiac issues. If a licensed physician diagnoses you with one of these recognized conditions and certifies that it is severe enough to prevent you from working, then you may have a valid claim. The claim would be for the diagnosed medical condition, not for the more nebulous concept of “burnout.” It’s a very challenging, but not impossible, type of claim.

LTD and Workers’ Compensation: How They Interact

On-the-Job vs. Off-the-Job Coverage

These two types of insurance are mutually exclusive. Workers’ Compensation covers you only for disabilities that arise from a work-related injury or illness. Your long-term disability policy, on the other hand, covers you for disabilities that occur outside of work. In fact, most LTD policies have an exclusion for work-related disabilities, as they are intended to be covered by Workers’ Comp. They are two separate systems designed to protect you from two different types of risk.

Can You Work Part-Time While on LTD? (Partial Disability Rules)

The Path Back to Productivity

Yes, if your policy has a partial or residual disability benefit, you can absolutely work part-time. This is a common scenario. Let’s say you are recovering from an illness and can only handle 50% of your previous workload, resulting in a 50% loss of income. Your LTD policy would pay you a partial benefit to help make up for that loss. This feature encourages you to be productive and return to work in a gradual, safe manner without being financially penalized for it. It’s a crucial component of a flexible, real-world disability plan.

What Your HR Department Might Not Explain About Group LTD Taxability

The Critical Difference Between Pre-Tax and Post-Tax Premiums

Some companies offer a choice: you can let the company pay your LTD premium (pre-tax), or you can elect to pay the premium yourself with after-tax dollars through a payroll deduction. If the company pays, the benefit you receive is taxable. If you pay, the benefit is tax-free. Your HR department may not proactively explain the huge advantage of paying the small premium yourself to get a tax-free benefit. For a few dollars a month, you can significantly increase your potential take-home disability pay. It’s the best deal in the benefits booklet.

The Future Income Increase Rider: Growing Your LTD Coverage Automatically

Your Policy Grows with Your Paycheck

As a young professional, your income is likely to increase significantly over your career. A “Future Income Increase” or “Benefit Update” rider allows your disability coverage to grow with you. Every few years, this rider allows you to apply to increase your monthly benefit to match your new, higher salary, without having to go through new medical underwriting. You just have to provide financial proof of your new income. This is a critical rider for any young professional who expects their income to rise over time.

LTD Insurance for Stay-at-Home Parents? (Protecting Economic Value)

A Niche, But Important, Coverage

While it’s less common, some insurance companies do offer long-term disability policies for non-working spouses. The disability of a stay-at-home parent doesn’t result in a direct loss of income, but it does result in a massive increase in expenses. The family would have to hire a full-time nanny, a driver, a cook, and a cleaner to replace the services the parent provides. The LTD policy would provide a monthly benefit to help cover these new, significant costs. It’s a way of insuring their huge economic contribution to the household.

Common Exclusions in Long-Term Disability Policies

What’s Not Covered

Every LTD policy has a list of exclusions. The most common ones include disabilities arising from: an act of war, participation in a riot, the commission of a felony, an intentionally self-inflicted injury, and, in some cases, normal pregnancy (though complications are usually covered). Most policies also will not pay a benefit if you are incarcerated. It is important to read the “Exclusions and Limitations” section of your policy so you have a clear understanding of what is not covered.

How LTD Helps Maintain Your Lifestyle (Mortgage, Bills, Savings)

Keeping Your Financial Life on Track

A long-term disability can be devastating. Without an income, many families would face foreclosure, bankruptcy, and a complete loss of their standard of living. An LTD policy prevents this. The monthly benefit check allows you to continue paying your mortgage, your car payments, and your utility bills. It allows you to keep buying groceries and putting gas in the car. Crucially, it allows you to continue saving for retirement and for your children’s education. It keeps your entire financial life from being derailed by a health crisis.

My Experience Helping Someone Through an LTD Claim

A Story of Paperwork and Perseverance

I recently helped my brother-in-law file an LTD claim after a serious back surgery. The process was daunting. We had to collect detailed medical records from three different doctors, fill out a 20-page claim form, and provide years of tax returns to document his income. The insurance company requested additional information twice. It took almost four months to get the claim approved. The experience taught me that filing a claim requires incredible organization, detailed documentation, and, most of all, the perseverance to see the process through to the end.

Why LTD is More Important Than Life Insurance for Young Professionals

The “Living Death” is the Greater Financial Risk

For a 30-year-old, a long-term disability is both more likely to occur than death and, arguably, a greater financial catastrophe. If you die, your expenses stop. But if you become disabled, you are still alive. You still have a mortgage, you still have to eat, and you now have significant medical bills. You have all the expenses of living, but none of the income. This “living death” is a much greater financial burden on a family. This is why, for a young professional, having a robust disability insurance policy is even more critical than having life insurance.

Student Loan Riders on LTD Policies: Protecting Your Payments

A Rider for the Modern Professional

Many young professionals, especially doctors and lawyers, have massive student loan balances. A new and valuable rider offered by some LTD carriers is a “student loan protection” rider. In addition to your monthly disability benefit, this rider will pay an extra monthly amount that is specifically earmarked to cover your student loan payments. This ensures that a disability doesn’t cause you to default on your educational debt, protecting your credit and your financial future. It’s a rider that is perfectly tailored to the realities of the modern professional.

The Underwriting Process for Individual LTD: What Insurers Look At

A Deep Dive into Your Health and Finances

Getting an individual LTD policy is a detailed process. The underwriter will look at three main things. First, your medical history. They will do a full medical exam and review your doctor’s records. Second, your occupation. They will assess the specific duties of your job to classify your risk. A construction worker has a higher risk than an accountant. Third, your finances. They will want to see tax returns or pay stubs to verify your income and ensure the benefit amount you are applying for is justified.

LTD: Protecting Your Ability to Earn – Your Most Valuable Asset

The Ultimate Paycheck Insurance

Think about your greatest asset. It’s not your home, your car, or your 401(k). It is your ability to get up every morning and go to work to earn an income. Over a 40-year career, that ability is worth millions of dollars. A long-term disability policy is the only product specifically designed to insure that asset. It is paycheck protection insurance. It guarantees that if a health crisis takes away your ability to earn, you will still have a stream of income to support yourself and your family.

Can You Have Too Much LTD Coverage? (Overinsurance Limits)

Insurers Want You to Have an Incentive to Return to Work

Yes, insurance companies are careful not to “over-insure” you. They will typically limit your total disability coverage from all sources to about 60-70% of your pre-disability income. They do this because they want you to have a financial incentive to recover and return to work. If you could make more money by being disabled than by working, it would create a moral hazard. So, when you apply for a new policy, they will ask about any existing group or individual coverage you have to ensure your total benefit doesn’t exceed their limits.

Reviewing Your LTD Policy Annually: Is Your Coverage Still Adequate?

Your Income Grows, Your Coverage Should Too

A common mistake is to buy an LTD policy in your 20s and then never look at it again. But your income will likely grow significantly over your career. A policy that was adequate to cover your $60,000 salary at age 28 is dangerously inadequate to cover your $150,000 salary at age 38. You should review your LTD coverage every couple of years or after any significant salary increase. If you have a “Future Income Increase” rider, you should be exercising it regularly to ensure your protection keeps pace with your success.

What if Your Occupation Changes After Buying LTD?

Notify Your Insurer to Ensure Proper Coverage

If you change careers after you have bought your LTD policy, you should notify your insurance company. Your premium is based on your “occupational class” at the time you applied. If you were an accountant (a low-risk occupation) and you become a pilot (a high-risk occupation), your risk to the insurer has changed. They may need to adjust your premium. Conversely, if you move from a high-risk to a low-risk job, you may actually be eligible for a lower premium. It’s important to keep your insurer updated.

The Peace of Mind LTD Provides: Worth Every Penny

The Freedom to Live Life Without Financial Fear

The greatest benefit of my long-term disability policy isn’t financial; it’s emotional. It gives me the freedom to live my life—to ski on the weekends, to travel, to pursue my career aggressively—without the nagging fear in the back of my mind about what would happen if I got sick or hurt. I know that I have a robust safety net in place that will protect me and my family from financial ruin. That peace of mind, that freedom from financial fear, is worth every single penny of the premium I pay.

Top Mistakes People Make When Buying Long-Term Disability Insurance

Avoid These Common Pitfalls

The number one mistake is simply not buying it at all, assuming it will never happen to them. The second is relying solely on their employer’s group plan, without understanding its limitations and taxability. The third is choosing a cheaper policy with a weak “any-occupation” definition of disability instead of paying a little more for a true “own-occupation” policy. And the fourth is failing to add crucial riders like a cost-of-living adjustment, which can leave them underprotected in the long run.

How LTD Prevents Dipping Into Retirement Savings Prematurely

The Firewall for Your Nest Egg

A long-term disability can be a wrecking ball for your retirement plan. Without an income, many people are forced to start making early, penalty-ridden withdrawals from their 401(k) or IRA just to pay their monthly bills. This can permanently cripple their long-term financial security. A long-term disability policy acts as a firewall. It provides the income you need to live on, allowing your retirement nest egg to remain untouched and continue growing for its intended purpose: your actual retirement.

LTD Insurance Company Ratings: Why They Matter

A Long-Term Promise Requires a Long-Term Partner

A long-term disability policy is a promise from an insurance company that could last for 30 years or more. You need to be absolutely certain that the company will be around and financially stable enough to pay your claim if you need it two decades from now. This is why you should only ever buy a policy from an insurer with a top-tier financial strength rating from independent agencies like A.M. Best (look for A+ or A++). The company’s financial stability is the foundation upon which your entire policy’s guarantee rests.

Can You Convert Group LTD to an Individual Policy? Rarely.

Another Reason to Own a Private Policy

While many group life insurance policies offer a conversion privilege, this feature is extremely rare for group disability insurance. In almost all cases, when you leave your job, your group LTD coverage terminates, and there is no option to convert it into a portable, individual policy. This is one of the most compelling reasons to own your own individual disability policy. It is a portable asset that you control and that will stay with you throughout your entire career, regardless of who you work for.

LTD: The Financial Backstop for Life’s Worst “What Ifs”

The Ultimate Defensive Play

Life is full of “what ifs.” What if I get into a serious car accident? What if I’m diagnosed with a chronic illness? What if an injury prevents me from ever working in my chosen field again? Long-term disability insurance is the financial answer to all of those terrifying questions. It is the ultimate defensive financial play. It provides a guaranteed backstop that ensures that even if your health fails, your financial life doesn’t have to. It’s the plan for when things go catastrophically wrong.

How Technology is Changing LTD Underwriting and Claims

A Faster, More Data-Driven Process

The disability insurance world is slowly being changed by technology. The underwriting process is becoming more data-driven, with insurers using electronic health records (with your permission) to make faster decisions. The claims process is also becoming more streamlined, with online portals for submitting documentation and tracking the status of a claim. While it’s still a complex product, technology is helping to make both the buying and the claims experience a little bit faster and more efficient for the modern consumer.

The $1 Million+ Reason You Need Long-Term Disability Insurance

Protecting Your Lifetime Earning Potential

Let’s do some simple math. A 30-year-old earning $75,000 a year, with modest 3% annual raises, will earn over $3.5 million by the time they are 65. That future income stream is, by far, their largest and most valuable asset. A long-term disability is the single greatest threat to that asset. A disability insurance policy is the only tool that can provide a multi-million dollar benefit over time to replace that lost income. When you think about it that way, insuring your future earnings isn’t just a good idea; it’s an absolute necessity.