Life Insurance Plans

Understanding Disability Insurance

Disability insurance is designed to protect your income in the event that an illness or injury prevents you from working. It provides financial support by replacing a portion of your lost earnings, helping you continue to meet your financial obligations—from mortgage payments to everyday living expenses—while you recover.



Disability coverage can vary in terms of benefit amount, waiting period, and duration, so it’s important to work with an experienced insurance advisor to select a policy that aligns with your lifestyle, income, and long-term goals.

Types of Disability Insurance

There are two primary types of disability insurance to consider:

• Short-Term Disability Insurance: Offers temporary income replacement for a limited period—typically 3 to 6 months—after a qualifying illness or injury. This is ideal for short recovery periods or temporary medical conditions.
• Long-Term Disability Insurance: Provides income protection for extended periods, potentially up to retirement age, if you are unable to return to work due to a serious condition. This type of coverage is essential for long-term peace of mind.
  

What to Consider When Choosing Disability Insurance

When evaluating disability insurance, consider the following:

• Monthly Benefit Amount: Estimate how much of your income you would need to replace during a period of disability.
• Waiting Period: Understand how long you would need to wait before benefits begin (often 30, 60, or 90 days).
• Benefit Duration: Consider how long you would need coverage—short-term, several years, or until retirement.
• Occupation Class: Some policies offer stronger benefits based on your profession and job duties.
• Group vs. Individual Plans: Evaluate if your employer offers disability coverage or if you need a standalone policy.

Understanding Annuities

Annuities are financial products designed to provide a steady income stream, often used for retirement planning. By making a lump-sum payment or a series of payments to an insurance company, you can receive guaranteed income either immediately or in the future.

Annuities offer the advantage of predictable income, tax-deferred growth, and in some cases, protection from market volatility—making them a valuable addition to a diversified retirement strategy.

Types of Annuities

There are several types of annuities, each offering unique features:

• Fixed Annuities: Provide guaranteed interest rates and fixed payments for a specified period or for life. They are ideal for conservative investors seeking stability.
• Variable Annuities: Offer investment options tied to market performance. Payments can vary based on how your selected investments perform. These are suited for those comfortable with market risk.
• Indexed Annuities: Returns are linked to a market index (like the S&P 500), offering more growth potential than fixed annuities while limiting downside risk.
• Immediate Annuities: Begin paying out almost immediately after a lump-sum investment—often used by those already in retirement.
• Deferred Annuities: Payments begin at a future date, allowing the investment to grow tax-deferred over time.

What to Consider When Choosing an Annuity

Before purchasing an annuity, keep these factors in mind:

• Retirement Income Goals: Determine how much income you’ll need to supplement other retirement sources like Social Security or pensions.
• Time Horizon: Decide whether you need income now or are planning for the future.
• Risk Tolerance: Choose a product that fits your comfort level with investment volatility.
• Liquidity Needs: Understand surrender charges and access limitations for withdrawing funds early.