Did you know that one in four people will be disabled at some point during their careers?1 Disability insurance is designed to protect your income by replacing a portion of your paycheck if you're ever too sick or injured to work. It lets you rest easy knowing that your expenses will be covered, keeping your lifestyle intact and your financial plan on track so you can focus on getting better.
1 in 4 people will become disabled at some point during their career.1
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How much do you know about disability insurance?
Questions about disability insurance? We've got answers.
Disability insurance can replace a portion of your income if you're ever too sick or injured to work. It can also help cover the cost of help you might need if you spend your days at home taking care of a child or parent and become disabled. See how much coverage you need.
If you depend on your income, it's important to protect it. Disability insurance can close the gap between the coverage you have through your employer's group policy and what you'll need to maintain your lifestyle if you get sick or injured and can't work. See how much coverage you need.
You might think you don't need disability insurance if you have coverage through work. But in most cases, that only covers around 50-60% of your income—and only for a certain amount of time. Plus, you'll have to pay taxes on any payments you get from that coverage. But when you have your own policy, you can get closer to having 100% of your income covered, the payments you get will not be taxed, and you'll stay covered even if you change jobs. Calculate your coverage amount.
There is a disability insurance component to Social Security. But the benefit payments are likely to be lower and qualifying for benefits can be more difficult than with a private policy. Connect with an advisor.
Disability insurance is generally quite affordable. In fact, most policies cost less than a daily cup of coffee.2 When you buy a disability insurance policy, you pay a premium based on the length and type of coverage you choose, your health, the benefit amount, and other factors. Connect with an advisor.
There are two types of disability insurance policies, short-term and long-term. Short-term disability (STD) is usually provided by your employer and is designed to replace a portion of your income for a short period of time, like several months.
Long-term disability (LTD) gives you coverage if you're out of work for a longer period of time because of a more severe or permanent disability. LTD is sometimes offered as a workplace benefit, but it's typically purchased as an individual policy. Coverage is designed to last for many years—even through retirement if needed.
LTD and STD policies work best in tandem because LTD doesn't kick in right away and there's an elimination period, while an STD policy kicks in more immediately. Connect with an advisor.
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There are several types of disability insurance. Find the one that's right for you.
Disability insurance for individuals can protect your ability to earn a living by replacing some of your income if you are too sick or injured to work—so you can focus on getting better without worrying about how the bills will get paid or dipping into your savings.
For people in the medical field—doctors, dentists, and medical students—disability insurance is especially important because you're not just protecting your income, you're protecting the investment you've made in your career.
Disability insurance can help cover your overhead expenses and keep your business running if an owner or another key person becomes too sick or injured to do their job. It's also a valuable benefit you can offer employees to help attract and retain top talent.
Disability insurance: a key part of a smart financial plan
When you work with Northwestern Mutual, we listen to the goals you have and design a personalized financial plan specifically for your life. Disability insurance will likely be an important part of that plan, giving you:
A policy with a monthly benefit that can be customized to your life and needs
Protection for the financial progress you've made so far
Income when you need it most so your lifestyle doesn't get detailed
Dividends that can be used to reduce your premiums over time