1. Disability can disastrous financially. If you are disabled, you lose your earning power, but you still have living expenses and often huge expenses for medical care.

YOUR SITUATION: Do you know how disability is defined? When do your benefits begin?

How long do your benefits last? What is the amount of your benefits? Can benefits be reduced by Social Security disability and worker’s compensation payments? Are the benefits adjusted for inflation? You should aim for benefit amounts that, when added to your other income, equal 70 or 80 percent of your gross pay.