Taking time to review your disability insurance whenever you experience a big life change is essential. That’s because the need to protect your future income becomes more crucial when new family members depend on your income.
Here are some life changes that should trigger a review of your disability insurance:
- 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 elderly parent
- Becoming an empty nester
- Experiencing a death in the family
However, if your disability insurance is through your employer, then things are a bit different. Your employer-sponsored disability insurance coverage typically replaces a certain percentage of your current salary—for example, 50%. So your coverage will automatically increase whenever you get a raise. That being said, it’s important to remember that your employer-sponsored disability insurance may not provide enough income to maintain your standard of living should you become injured or ill. You can lose your disability insurance benefits if you are terminated or leave your job. That’s why it is a good idea to talk with a licensed insurance broker about getting extra disability insurance to supplement what you already have.
Even if you aren’t experiencing any major life changes, it’s still a good idea to meet with your licensed insurance agent once a year to review your disability insurance. They can make sure it can protect you and your family if an injury or illness prevents you from working. They can also let you know about new coverage options that are worth considering.
The best way to learn more about disability insurance and get a free disability insurance quote is to speak with a licensed insurance agent. Get started today with Cosmo Insurance Agency.
Cosmo Insurance Agency is a full-service independent insurance agency based in Hackensack (Bergen County) and Lakewood (Ocean County), New Jersey that offers an all-encompassing range of insurance options for both individuals and businesses. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating our knowledge of the insurance guidelines for healthcare, employee benefits, life insurance, self-insurance, dental, disability, and long term care insurance, we keep our clients up-to-date with affordable plans that cover all their specific insurance needs.
