Replacing lost income
on a tax-advantaged basis

It happens every day. An unexpected injury or illness prevents someone from working — and earning the income they need to support themselves and their families. Sometimes this is just the first step on an anxiety-filled path that can threaten financial stability. Everything you have worked for could be lost because of a single event.

Most people's single greatest asset is their income.

How can you protect your income, your family, yourself – and even your business?  When you are unable to work, the last thing you want to worry about is where money is going to come from. Even though you are on the sidelines, you are still responsible for payments for food, clothing, shelter and a host of other things. Family members and friends may be able to contribute extra in times of need, but you probably don’t want to burden them unnecessarily.

The single best way to protect yourself is with a disability insurance policy. The market offers a wide range of products that can replace lost income when you are unable to work. Most will require a health assessment to qualify. Variables include:

• How much of your income will be replaced
• When benefits begin
• How long benefits are paid
• Whether benefits are taxable or tax exempt
• Whether benefits can be increased as your income increases

Closely-held businesses and business owners are especially vulnerable. Certain policies can actually help businesses keep their doors open in the event that a key rainmaker becomes disabled.  Additionally, private policies typically replace more income over a longer period of time than standard group policies. These may be a good investment for high earners whose income extends beyond base salary.