If you were to become disabled due to an illness or injury, how would your cash
flow be affected? Would you have enough income to meet monthly expenses? This calculator
can help you estimate your need for income protection in the event you become disabled.
Based on the information you provided, the amount of income shortfall you might experience during a long-term disability is shown below.
Long-term disability (LTD) benefits are taxable when the employer pays the premiums, reducing an already limited benefit. In addition, employer provided LTD, even if employee paid, may not be portable. Disability income insurance coverage is generally limited to 60 percent to 70 percent of salary and typically has a monthly cap. Income may not be fully covered due to the cap. Bonuses are not counted as covered income by most LTD policies.
Income may be available from the following sources, but only for a limited time:
View your potential income shortfall due to disability.
This chart shows the percentage of your monthly expenses that you may need to replace
in the event of a long-term disability. A disability income insurance policy is
one tool you may want to consider to help you address this potential shortfall.
Social Security pays disability benefits, but you must be considered totally disabled,
and it can be difficult to qualify for benefits.
This hypothetical example is used for illustrative purposes only. Actual results will vary.
The information in this calculator is not intended as tax or legal advice, and it
may not be relied on for the purpose of avoiding any federal tax penalties. You
are encouraged to seek tax or legal advice from an independent professional advisor.
The content is derived from sources believed to be accurate. Neither the information
presented nor any opinion expressed constitutes a solicitation for the purchase
or sale of any security.
This material was written and prepared by Emerald Connect, LLC.
© 2019 Emerald Connect, LLC. All Rights Reserved.