Advice on Determining the Amount of Disability Income Insurance to Buy

The benefit amount of a disability income policy is the amount of the benefit that insured individuals will receive each month in the event they become disabled. In arriving at the benefit amount needed, potential purchasers must determine and factor in the other sources of income that they reasonably may expect to have available during a period of disability, as well as the living and health care expenses they would most likely expect to arise. Some sources that may provide income during disability include Social Security disability payments, group disability income provided by an employer, workers’ compensation, and income earned by a spouse.

Reproduced with permission.  Copyright The National Underwriter Co. Division of ALM

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