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Tom Meaglia, ChFC®, AEP®,
CLU®, CRPC®, MSFS
Chartered Financial Consultant
Investment Advisor Representative
Chartered Retirement Planning Counselor
CA Insurance Lic. #0567507
Meaglia Financial Consulting
2105 Foothill Blvd., #B140, La Verne, CA 91750
Toll Free: 800-386-3700
Bus: 909-593-6105
Cell: 818-681-8600
Fax: 909-593-6120
Email: tom@meagliafinancialconsulting.com
Website: www.meagliafinancialconsulting.com
July/August 2021
Disability Insurance - Who Needs It?
Disability insurance generally provides an income benefit if you can’t work because of an illness or injury. You may think this won’t happen to you, but, according to the Council for Disability Awareness, one in four 20-year-olds will become disabled before they retire. Back injuries, cancer, heart disease, and other illnesses are responsible for the majority of long-term absences.
Benefits for How Long?
Disability insurance falls into two categories. Short-term disability typically replaces 60%- 70% of your salary from a few months to up to two years. It requires a brief waiting period before benefits start.Long-term disability typically replaces 40%-60% of your salary for as long as you’re disabled or until you reach retirement age. A common waiting period before benefits begin is 90 days, but you have the option of choosing a shorter or longer time.
Some employers offer disability insurance as an employee benefit. If your employer doesn’t offer coverage (or the coverage is limited) or if you’re self-employed, buying long-term disability insurance is a smart move. Having your own policy also allows you to keep your coverage even if you change jobs.
The Definition of Disabled
The definition of disabled varies depending on the policy. Some policies pay benefits only if you can’t work at any job for which you’re qualified. Other policies pay if you can’t perform the duties of your own occupation. A policy may pay partial benefits if you’re able to work part time.Looking at Cost
The cost for a policy is typically one to three percent of your annual income. Factors that determine the cost include your age when you buy a policy, your health, the definition of disability, length of the waiting period, and the length of time benefits will last. You may be able to customize a policy with extra features, such as annual cost-of-living adjustments. However, adding features will increase the price.Other Income Sources
When determining how much of your salary you would need to replace, consider other potential sources of income for which you might be eligible, such as employer-provided sick pay, Social Security Disability Income (SSDI), or workers’ compensation (for job-related illness or injury).CONTACT US
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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
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