Understanding Your Coverage

Identify your current coverage

Do you have benefits at work? If so identify how your short (STD) and long (LTD) term disability insurance works.

• Does coverage kick in once disabled?
• What percentage of your Income is protected?
• Is bonus or incentive pay factored in?
• Is your benefit taxable?
• How long will your disability benefits pay once you are disabled? • What is the monthly maximum amount that your coverage will pay?
• What Is the definition of disability that your company goes by?
  (What determines full disability vs. partial)
• What riders or benefits come as apart of your policy or can be added to your policy?
• Add up your total monthly benefits you would receive for both STD and LTD.

Identify your coverage needs/shortfalls

1. Based on your benefits, if you became disabled on a long or short-term basis, what is your income shortfall in relation to your expenses? (Use your Disability insurance need calculator)
2. For short-term disability, do you have enough in savings that could cover your expenses for the period of time you would be eligible to receive those benefits?
3. For long-term disability, how would you be able to still maintain your expenses long term and still put money away once the benefits run out? (Benefits typically last until retirement age)