Congratulations on your first job on Wall Street! All of your hard work has paid off and you are now ready to start a big career ahead of you.

With your significant earnings potential ahead, you ought to consider a disability insurance policy to protect your current and future earnings. Your biggest asset is your ability to earn an income. If you become sick or hurt and can’t work, disability insurance will replace your monthly income.

Here are a few reasons why you might want to consider an individual disability insurance policy.

1. Protecting your income
   
   As an employee, your ability to earn an income is crucial. If you were to experience a disability that prevents you from working, disability insurance can provide you with a portion of your income, typically a percentage of your pre-disability earnings. This can help you maintain your financial stability and cover your expenses during your recovery period. Typically you can protect about 80% of your take home pay.

2. Employer-provided coverage

   : Some employers offer disability insurance as part of their benefits package. It’s worth checking if your employer provides any disability coverage and understanding the details, such as the coverage amount, waiting periods, and any limitations or exclusions. A lot of employees on Wall Street and in financial services are paid a small salary and large bonuses. Most group policies only protect the salary leaving large gaps in coverage. An individual policy will help cover that gap. If you employer is paying the premium, the benefits are taxable to you. Individual policies are tax free to you as long as you pay with after tax dollars.

3. Protecting your future earning potential

   : As you embark on your career on Wall Street, your income is likely to increase over time as you gain experience and progress in your field. Disability insurance can protect your future earning potential by providing coverage based on your current income level. This ensures that if a disability were to occur, you would be financially supported even as your income grows. It’s not just the initial salary that you are covering. It is the millions you will be expecting to earn over the next 30 years.

4. Personal circumstances:

   It’s also essential to consider your personal circumstances when deciding on disability insurance. Factors such as your age, health, financial obligations (such as student loans or dependents), and the availability of other support systems (like savings or family assistance) can influence your need for disability coverage. The younger and healthier you are, the easier it is to obtain an individual disability policy. Once you have your policy, you may increase in in the future without having to answer any further medical questions.

5. Portability

   . Most people on Wall Street move around over the course of their career. If you have an individual disability policy, you may take the policy with you throughout your career. If you don’t have a policy and have an adverse change in health, you may find yourself in an unfortunate situation where you are stuck at your employer to keep your coverage or only looking at firms who can provide you with a policy.

When considering disability insurance, it’s advisable to thoroughly review the policy terms, coverage limits, waiting periods, and any exclusions or limitations. Some employers offer short-term disability coverage, while others provide long-term coverage. You may also have the option to supplement employer-provided coverage with an individual disability insurance policy.

It is important to work with an independent broker such as Set for Life Insurance who has the expertise and the ability to shop around on your behalf to find you with the most suitable policy at the best available premium.

For more information or to request a quote, contact Set for Life Insurance today!