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Everything You Need to Know About Income and Asset Protection

Life is full of uncertainties and it’s important to protect your assets to ensure that you can remain financially stable through unexpected situations. No one wants to worry about financial stress when trying to recover from an accident or illness. Here, the experienced insurance agents at Unity Insurance walk through different types of disability insurance and how to protect your income while you are recovering.

How to Protect Your Income

Disability insurance protects your income if you are involved in an accident or diagnosed with an illness and cannot work. Health insurance will protect the cost of medical expenses, but it will not cover other life expenses such as mortgages, car payments, loans or other monthly bills. 

Employers may offer disability insurance, but not always. When they do, they cover the cost of the premiums, however, if you withdraw benefits from the policy, you must pay taxes on the benefits. 

You are able to purchase policies and coverages outside of your employer to ensure that all the financial aspects in your life are covered. If you choose to seek coverage outside of your employer, you will pay your premium and you will not pay taxes on the benefits. Researching income protection allows you to see where your employer’s benefits might not fully protect you and what you can do to secure financial stability in the event of an illness or accident. 

Types of Disability Insurance

Disability insurance is offered in long and short-term policies.  A portion of your income, which generally is between 40-70%, is protected for a period of time that is implemented in your insurance policy. This portion of income can cover the cost of any bills, such as mortgages, car payments, loans, groceries and any other necessities that are required while you are unable to work. Short-term disability policies are when you are unfit to work for less than six months. These claims are usually filed due to injury or illness. Long-term disability policies follow after short-term. Long-term disability is filed to cover any time that may be extended past six months due to injuries, accidents, illnesses or diagnosis’.

Consult With An Insurance Broker at Unity Insurance Today

Protecting your financial assets protects you and your family’s future. Illnesses or accidents can happen at any moment and you want to ensure that if anything were to happen, you can continue to live your life comfortably and avoid financial burdens. At Unity Insurance, our goal is to give you the support and guidance in securing financial stability in the case of an illness or accident. Contact us today for a consultation. Our team will walk you through the best policies and options tailored to your personal needs.