Disability income insurance

Your income depends on your ability to earn it

A well-rounded financial plan should protect what's important – especially your income. Disability income insurance offers an extra layer of financial protection by providing income replacement in the event of a disabling injury or illness. And, if you pay your premiums with dollars that have already been taxed, any benefits paid to you will be income-tax free.

How does disability income insurance work?

Disability income insurance is designed to replace your income when you're not able to earn it. If you receive coverage through work, it may only cover a portion of your income. Or it may be taxable if you have contributed pre-tax dollars to the premium, such as through automatic pre-tax payroll deduction, which further reduces its benefit. Retaining your own coverage gives you more control.

You choose disability income insurance based on:

• Benefit amount. The percentage of current monthly income you replace.
• Length of time before benefits start. Also called the elimination period; similar to a deductible for medical or auto insurance. You typically choose 30, 60, 90 or 180 days.
• Terms of income. You can set the terms for a length of time to receive your benefit anywhere from one to two years up until age 67.
• Definition of disability. This can be the most important part of a policy. The types of injuries or illnesses that can make it impossible to do your job are often much different from the types of disabilities that make it difficult. One type of injury may be covered and the other may not, depending on your choices.
  

When you're not sure, talk to a financial advisor about your choices. An advisor can help you determine the type and amount of disability protection you may need.

Ameriprise Financial disability income insurance solutions

Ameriprise Financial helps you protect what's most important with comprehensive options through our own RiverSource^® Disability Insurance or insurance offered through an outside provider .