Every family needs disability insurance to replace any lost wages if the main income provider becomes disabled. Disability insurance should generally cover sixty percent of your monthly income. Sixty percent is usually enough to live on while you are temporarily disabled, but isn't enough to keep you from returning to work. Basically, you should aim to sustain your standard of living. Disability insurance benefits are tax free if you pay the premiums yourself, but if your employer pays the premiums, benefits will be taxed like any other income. Your living expenses may be lower if your not working. Consult an attorney in your area for more information about calculating your disability insurance needs.
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