Don't Get Disabled

UNLESS YOU CAN afford to live comfortably without holding down a job -- in which case, why are you working? -- you need to have some disability insurance. It's as simple as that. You've got to have a backstop to help pay your bills if you get hurt, especially if you're single or if you depend on only one salary. Choosing the best disability policy, however, isn't always so simple. In addition to basic disability coverage, which replaces a portion of your income while you're hurt, insurance companies are now offering a number of new wrinkles. These policy add-ons, or "riders," help you pay for everything from your kids' college tuition to your own long-term care. While many of these riders may make great sense, some clearly do not.

Your best strategy is to ignore them all -- at first. Get as much basic coverage as you need at the best possible price. The worksheet will help you with that. Then, once you've figured out how much basic coverage is right for you, check out which riders make sense based on your circumstances.

This publication is for general informational purposes only and it is not intended to provide any reader with specific authority, advice or recommendations. Where you deem necessary, we suggest that you seek advice regarding your particular situation from the appropriate professional.

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