A. An insurance policy that replaces your income tax-free if, due to sickness or injury, you are disabled and unable to work.

A. If your income is critical to maintaining your lifestyle, then disability insurance is extremely important.

A. Most disability policies replace a portion of income, typically 60%. The benefits are tax free if the premium is paid by the employee.

A. Most companies give the insured a choice of benefit periods to buy, either to age 65 (optimal) or a shorter duration, 2 years or 5 years, for example.

A. Typically after the deductible is satisfied, known as the waiting period. Usually 60 or 90 days.

A. Possibly. Employer sponsored disability benefits are taxable to the employee as income. Also, many employer plans do not cover bonuses, and may have a cap on monthly income. For highly compensated employees, only 30%-50% of income may be protected. Balanced insurance Group can review an employer plan, and possibly layer a private policy on top. The advantage of a private policy is that benefits are tax free, and the policy is not cancelled should employment terminate.

A. Qualifying for social security disability is very difficult. One has to be totally disabled. And often it takes up to 2 years before a claim is processed.

A. Most likely. A private disability policy will either include partial disability benefits, or make it available as a very inexpensive option. If you are partially disabled, and you suffer a residual loss of income, partial disability benefits will make up the difference.

A. Yes. Future purchase options are available, and future insurance benefit increases are bought without any additional medical underwriting.

A. Actually, with some companies the answer is yes. Return of premium is an additional cost option that will refund all your premiums paid at age 65.