Integrity Financial Inc.

An important issue in evaluating personal DI is whether a policy specifies own-occupation coverage. If so, it offers more protection because the monthly benefit will be paid if the disability keeps you from working in your own occupation, even if you are able to work in another. For example, a disability could prevent the heavy business travel required of an executive-level occupation. Even if a disabled executive can perform less-demanding work, the own-occupation coverage would pay benefits.

If you participate in a group DI program at work, it's important to realize that any benefits received from that coverage can be taxable income. Normally, personal DI coverage is paid for with after-tax dollars and benefit payments are not taxable income. This means individuals can use personal DI to fill a large part of the gap in their safety nets, even if they have some group DI coverage at work.

To decide whether you need personal DI, ask yourself what resources you would use to survive a lengthy period of lost earnings due to disability. If those resources either don't exist or else are necessary for your long-term financial security, it's a good idea to discuss with our financial professionals how much personal DI coverage you need, and what companies offer the best combination of coverage and benefits for your situation.