How should I manage my disability insurance policy?

It’s a good idea to review your disability insurance whenever you experience a big life change. That’s because the need to protect your future income stream becomes more urgent when new people depend on your earnings or you take on (or pay off) debt.

Life changes that should trigger a disability insurance review include:

• Getting married
• Getting divorced
• Buying a house
• Having or adopting a baby
• Accepting a new job
• Receiving a substantial raise or promotion
• Taking out a mortgage or other loan
• Refinancing your home
• Paying off your mortgage
• Buying a business
• Selling a business
• Receiving an inheritance
• Having a loved one require long-term care
• Assuming financial responsibility for an eldery parent
• Becoming an empty nester
• Experiencing a death in the family

Things are a little different if your disability insurance is through your employer. Your employer-sponsored disability insurance coverage typically replaces a percentage or multiple of your current salary—for instance, 50%. So your coverage automatically increases whenever you get a raise. That said, it’s important to remember that your employer-sponsored disability insurance may not provide enough disability insurance income to maintain your desired standard of living should you become injured or ill. You also lose your disability insurance benefits if you leave your job or are terminated. For that reason, it’s a good idea to talk to your company’s human resources department or a financial professional about possibly getting extra disability insurance to supplement what you already have.

Even if you don’t experience a major life change, it’s still a good idea to meet with your financial professional once a year to review your disability insurance. He or she can make sure it’s able to protect you and your family if an injury or illness prevents you from working. He or she can also tell you about new coverage options worth considering.

The best way to learn more about disability insurance and to get a disability insurance quote is from a financial professional. Get started today with our locator.