We’re often asked, “How much disability insurance am I eligible for?”
Typically the maximum benefit someone can be covered for is 65 to 70% of adjusted gross income However, how much you actually receive can be much less. Why? Because most group disability benefits through an employer are taxable income, while individual policy benefits are not taxable income.
For example, Dr. Pepper becomes disabled and receives $10000/month from her group long-term disability policy. But because this is taxable income, she’s only able to use $6500 of this amount for living expenses. However, Dr. Pepper also has a supplemental specialty disability policy that pays her a benefit of$10000/month. Because this benefit is not taxable, she’s able to have the entire $10000 for living expenses. Her total combined benefit is $16,500/month.
The more individual coverage someone has, the higher their net spendable income can be while on claim. To make sure your percentages are correct call or text us at 704-707-5788
Billy Gwaltney
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