Is disability insurance a good idea?
A. Yes. Disability insurance will cover you for short and/or long-term disabilities you may incur during your working years. A good rule of thumb is to maintain approximately 60-70% of your gross monthly income. If the premiums are paid by you with after-tax dollars, any proceeds from a disability policy will be tax-free. You should also consider how much you may receive from social security if you were to become permanently disabled.
