Disability

How can I insure against loss of income?

If you were disabled and unable to work as a result of an accident or illness, what would you and your family do for income?

Disability income insurance, which complements health insurance, can replace lost income. Forty-three percent of all people age 40 will have a long-term (lasting 90 days or more) disability event by age 65.

There are three basic ways to replace income:

Employer-paid disability insurance

This is required in most states. Most employers provide some short-term sick leave. Many larger employers provide long-term disability coverage as well, typically with benefits of up to 60 percent of salary lasting from five years to age 65, and in some cases extended for life.

Social Security disability benefits

This can be paid to workers whose disability is expected to last at least 12 months and is so severe that no gainful employment can be performed.

Individual disability income insurance policies

Other limited replacement income is available for workers under some circumstances from workers compensation (if the injury or illness is job-related), auto insurance (if disability results from an auto accident) and the Department of Veterans Affairs.

For most workers, even those with some employer-paid coverage, an individual disability income policy is the best way to ensure adequate income in the event of disability. When you buy a private disability income policy, you can expect to replace from 50% to 70% of income. Insurers won’t replace all your income because they want you to have an incentive to return to work. However, when you pay the premiums yourself, disability benefits are not taxed. (Benefits from employer-paid policies are subject to income tax.)

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Pennie Hunt
Speaker, Author -- Communicator of Life Lessons www.PennieHunt.com
John worked with me to secure an insurance policy. He kept me informed every step of the way from the application process to having the policy in hand. He is professional, detailed and thoughtful in his work. I would recommend his services in the highest way.

Harris Cohen
chiropractor and author at Dr. Harris R, Cohen
John is an expert in his field. He is very intelligent and has great insight.
I highly recommend John for all your insurance and retirement needs.

Jim Naples
owner EASTBAY BUILDERS INC.
John is a person who brings his knowledge and integrity of his business to any company or individual he works with. We have used John to implement insurance options in several of our businesses and were impressed with the service and creative options he brought to the table in ways to diversify and save money. I would recommend him for all financial and annuity plans especially in this economy.

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Entrepreneur | Premier Digital Marketing Strategist | SaaS Enterprise Executive | Educator
I don't write many recommendations for business associates on LinkedIn, yet I feel compelled to do so for John Johnson.

I've known and worked with John for more than 20 years. Most importantly, I believe he's one of the most ethical and focused businessmen I know.

John's approach to business is not typical. He's the type of person who seems to have an intuitive sense for not only where markets are moving, but the way it will affect people. He then applies that to how it can benefit his current and potential customers. I think that John excels because he cares about those he does business with and genuinely wants to help. He's consultative, but never preachy. He'll do what's right for his clientele -- whether it means he'll get the business or not. Simply, he cares. Most importantly, John's a decent man who's also a lot of fun to be around. He's always got a funny story and leaves you with a sense that you're in good, capable hands.

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