Do I need disability insurance if my employer provides it?

Do I need disability insurance if my employer provides it? This is a common question and the answer is yes. Most people are unaware that their employer provided plan has some limitations. It's only going to cover 60% of your salary, typically not insure your bonus. A lot of people are unaware that this is a taxable benefit. So what was going to cover 60% of your income is now really down to about 40 or 50% of your income. Most people we talk to can't take a 40 or 50% pay cut. So the way we take care of this is with a supplemental individual disability policy. This can get you back up to about a more reasonable amount of take-home pay, generally in the neighborhood of 70 to 75% of your take-home pay. Some of the benefits of this is it's a portable contract, meaning you can take it with you whenever you leave your employer. Most clients of ours don't stay with the same company they started with at the beginning of their career. Some of the other benefits we can do is we can add on riders that allow you to increase the coverage in the future as your income increases without the evidence of insurability, meaning you don't take another medical exam. So typically as we get older, we start to make more money, but our health doesn't get any better. So this allows us to keep our benefit current with our current standard of living. So one other benefit we can add for our younger clients in particular is a cost of living so that their benefit has the same buying power 15, 20, 30 years down the road. Thanks for watching. If you have any interest in these products, feel free to look us up online or email us at info at McGriffWilliams.com.