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Disability Insurance Quote

Alignment Financial 

At Alignment Financial, we are committed to providing a high level of service that stands apart from the rest. Our team of independent financial guides collectively have decades of experience in the financial services industry. We deliver financial confidence and personal peace through the most cutting-edge financial strategies available. At Alignment Financial, we take serving our clients to heart. We put your needs ahead of our own and provide sound financial advice that we would follow. It is our pleasure to work side by side with our clients, ensuring that each unique situation is addressed. Your financial plan should be as individual as you are, and at Alignment Financial, we make sure of that. As an independent agency, we’re passionate about offering solutions that are best for YOU - no matter what part of your financial journey you may be on. 

What is Disability Income Insurance?

In the event of an accident or illness that prevents the insured from working at their current place of employment, disability income insurance will provide a supplementary income to the insured. The benefits of this insurance will most often be paid monthly to maintain a standard of living similar to that which the insured had been accustomed to before the accident or illness. This type of disability insurance is offered through employers based on the income they pay to the insured during employment.

What is Individual Disability Insurance?

Individual disability insurance is a private policy purchased by an individual rather than one given through their employer. As long as you continue to pay for individual disability insurance policy, you will own the right to use it if you become disabled and unable to continue producing your standard salary. The policy will cover the lost salary amount and remains portable as you transition between jobs. In this policy, the benefit is also typically tax-free.

How does Disability Insurance Work?

In a disability insurance policy, the compensation provided is designed to replace anywhere between 45% to 60 – 70%65% of the insured’s gross income take home pay because it is tax-free. Your insurance advisor will work with you to design a quote based on your current income and the income lost due to injury. From there, your quote will be analyzed and adjusted based on specific needs. When you are filing to claim benefits, a doctor will certify that you are disabled severely enough that you cannot engage in work at your current job. In some cases, disability insurance will also pay a partial benefit if your disability prevents you from doing some, but not all, of your responsibilities.

Disability Insurance Benefits

  • Typical health insurance will only cover your medical bills in the event of an accident or injury. They do not consider the damage done to your household income during the time you are unable to work as normal. Disability income insurance protects the insured against lost salaries or wages by providing a portion of your income while you are unemployed.
  • Those who own small businesses or are self-employed are not protected against the loss of their income by an employer. Instead, they can purchase individual disability insurance as a preventative approach to their lost earnings in the event that they suffer an accident or illness.

Key Takeaways

You never know what life has in store. Accidents and illnesses happen, so the best option we have is to prepare for them. Disability insurance is a great way to protect yourself if you suffer an accident or illness that leaves you unable to work. The amount of earnings lost during your temporary unemployment can have a significant impact on your life, your investments, and your financial standing. By purchasing or owning some form of disability income insurance, or individual disability insurance, you can rest assured knowing that your income will be waiting for you even if you are not well enough to work.